GLOBAL DIPLOMACY

Global Diplomacy

Abstract

This study strives to explore the diplomatic relationship between the United States and India. The core objective of this paper is to enlighten U.S-India relationship in diverse contexts. In addition, the research analyzes different dimensions that make India as a favorable country with which U.S wants to build sustainable relationship. Moreover, the study explores diverse resources and stable sectors of India that are appealing to the United States in order to justify the relationship between both countries.

Table of Contents

Introduction4

The Interests and Goals of the United States5

Importance of India: Regional and Strategic Resources5

Historical Background of India7

Current Situation of India8

Why U.S Cares9

India's Resources and other Important Factors10

India's thinking about the United States11

India's Foreign Policy12

Conclusion12

References14

Global Diplomacy

Introduction

The purpose of this paper is to enlighten and explore the U.S diplomatic relations with another country. The country selected for the analysis is India due to its intense economic growth, political stability and the recent stabilization of the relations between U.S and India. The economy of India is stable and suitable for any FDI or other forms of investments; in addition, due to stability in the political system there are fewer risks to the countries that invest in this country. The policies of India are noninterventionist and translucent regarding the FDI as compared to other developing economies, and it has simplified foreign exchange controls. India is filled with profuse labor force that is skilled and possesses expertise in diverse fields; this is favorable for the countries that intend to invest in India as the opportunities offered by India are enormous.

The economy of India can be regarded as the 10th largest economy of the world; in addition, in terms of the purchasing power, the economy of India stands at 4th ranking in the world. In terms of growth, the economy of India stands at 2nd rank after China. According to diverse sources, the IMF has declared that the economy of India will flourish by 8.75% in 2011. The IMF has the utmost confidence in the business and commercial practices of the country, and claims the renaissance in demand from the working class. In addition, diverse sources state that IMF claims India as the 3rd largest economy of the world by 2030 (Fetscherin, Toncar, 2009).

The Interests and Goals of the United States

The United States has always strived to assist countries in their economic advancement. India is the second fastest growing economy of the world and the economic development of India is eminent since last couple of years. The United States assists India to become s developed country before its expectations. In return, the United States has certain interests that can be fulfilled by the country as it is rich in resources. One of the significant interests of the United States is the readily available labor force of India (Blake, 2004). The cheap labor costs have been one of India's competitive advantages in attracting foreign investors. Regulations on minimum wages vary across states and sectors (Singh, 2011).

The government, however, imposes a National Floor Level Minimum Wage, which was increased ...