The Indian Ocean has been a key focus area of United States (US) foreign policy, with significant engagement and arrangements with the respective South Asian nations. A significant change has been renaming “Asia-Pacific” as a region into “Indo-Pacific”, reshaping the interests and the interdependencies of the US with India and other South Asian democracies. One of the major beneficiaries of the new US foreign policy has been India. Sri Lanka’s geographic location in the Indian Ocean makes itself pivotal to be included in advancing India’s strategic interests. The nature of relations with Sri Lanka will determine India’s future in its pursuit for the regional continuity, promote strategic interests and strengthen the economic prosperity of each other.
Indo – US Pacific Foreign Policy
US Foreign policies are influenced by their domestic political scenarios. From the early 2000s, there has been a demonstrated effort by the respective Heads of the US towards stronger engagements with South Asian countries like India. Former President Clinton revived the India-US relationship by supporting the India –US Civil Nuclear agreement and during the former President Obama’s tenure and President Trump the bilateral trade between India and the US had hoped to multiply by five-fold. The Presidential campaigns of “Stronger together” and “Make America Great Again” respectively reiterated strengthening the domestic policies, and along with engaging the South Asian regions. Under the current administration, the new US foreign policy is also strategically aligning with India through the Indo-Pacific policy to counterbalance the influence of other powers in this region. India’s rising leadership role in the region and within the various membership forums such as the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC), brings relevance for strengthening partnership and to protect common interests of US and India.
The increasing interdependencies of India and US across many fronts are founded on common strategic interests. Top of the list has been to counterbalance China’s attempts at flexing itself in the Indo-Pacific region. The international sea lines of communication in the Indian Ocean features world’s 30% of the container traffic and oil traffic. Within this is majority of China’s oil that plies on these travel routes. China has been aggressively expanding its influence and shifting its India policy to protect its sea lines of communication in the Indian Ocean. (US Department Of State , 2018). China’s system and approach of collaborating with small island nations have some gains as well as some serious drawbacks. The Geo-Political and Strategic position of Sri Lanka and the Indian Ocean has become the most crucial part of China’s Belt and Road Initiative (BRI). Sri Lanka’s geo-strategic location makes itself an important regional hub to travel routes. Such considerations provide the US with enough reasons to develop and strengthen its collaboration with both India and Sri Lanka.
The US diplomacy with the Indian subcontinent and its neighbours over the last seven decades has changed considerably. This nature of involvement of the US with the South Asian nations has varied with time as the US national interest has gone through different stages of evolution. The US foreign policy expectations from the South Asian countries comprise of increased leadership and management as well as the establishment of rule of law and free-market economy in the region.
The US is the fifth largest investor in India, showing a steady growth year on year. In 2019, US investments in India were valued at approximately US $45 billion. India-US bilateral relations have developed into “global strategic partnership”, based on shared democratic values and commercial interests. The bilateral cooperation between the two nations is broad-based and multi-sectoral.(Economic Times , 2020).
The Tripartite Relations: US-India-Sri Lanka
The US considers Sri Lanka as a gateway to the Indian Ocean and a key partner in the Indo-Pacific region. Its proximity to India, and being an island nation provide Sri Lanka with strategic importance in maintaining their political and economic interdependence. Washington has given special importance to Sri Lanka since 1956. The United States Agency for International Development (USAID) states that the development aid was worth over US $2 billion. Lately, Sri Lanka has enjoyed favourable economic conditions which are conducive to trade, tourism, and investment as a result of this development aid. Two-way trade between Sri Lanka and the US estimates to US $3.2 billion. Sri Lanka’s economic expansion points to a phenomenal potential for further growth. Annually over 50,000 ships pass the coast of Sri Lanka.
India is a close ally of the US, is pushing for stronger ties with its southern neighbour, Sri Lanka, under its “Neighborhood First” foreign policy doctrine. India’s expected economic growth in the upcoming years will naturally have a drastic effect on Sri Lanka, presenting further opportunities for the US to engage in this region. Sri Lanka being India’s largest trading partner among the SAARC makes India one of its largest trade and investor amounting to US $5.3 billion (Indian High Commission Colombo, 2019).Trade instruments like the South Asian Free Trade Area (SAFTA) and the Indo-Sri Lanka Free Trade (ISFTA) agreements are some of the gainful tools with which the US can use to access South Asia’s consumer markets. The US too needs to consider the socio, political and economic factors of these South Asian countries, when they frame their US foreign policy mandate.
How US Foreign Policy can benefit India and Sri Lanka
India – Sri Lanka partnership will bolster both peaceful maritime security and trade sentiments in this region. In this context, both India and Sri Lanka being positioned in the centre of the Indo-Pacific Region can positively impact the economic future of these countries. US relations with these countries through its foreign policies could lay a foundation to transform for further development.
To balance it out it seems sensible to conclude by saying that this assessment considers reinforcing India’s security plan, extending their local connections and ensuring the power of the much-preferred democracies in the Indian Ocean.
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