India’s relations with America were not friendly in the beginning. During cold war India adopted a policy of Non-Alignment, but due to many factors, India had very close relation with Soviet Union. However, the position changed after the end of cold war. After the disintegration of Soviet Union, the relation between India and US relations also changed. India and U.S became close to each other. In January 2004 both the countries agreed to increase the corporations on 3 issues- Civilian nuclear program, civilian space programme and high technology.

During the debate in Lok Sabha on the Indo-U.S agreement on nuclear energy the Prime Minister Dr. Manmohan Singh said that in recent years India’s impressive economic growth rate has made the country an attractive economic partner for a number of countries including the U.S.

It is important that we do not loose sight of the fact that two new factors have emerged in Indo-U.S relations in recent years. These factors relate to the technological dimensions in the role of Indian-American Diaspora. In fact these two factors are interrelated. The following facts prove the importance of close relations between India and U.S:

1. The U.S absorbs around 65% of India’s total exports in the software sections.

2. 35% of the technical staff of the BOING is estimate to be of Indian origin.

3. 3 Lakh Indians works in the Silicon Valley.

4. 15% of all high-tech start-ups are by Indians-Americans.