Washington, March 30 India is "disappointed" by "insufficient" US attention to terrorism emanating from Pakistan, according to a new report, which also suggests that Washington should respect New Delhi's red lines on Kashmir and avoid third-party mediation.
A policy paper released this week by the think tank Center for a New American Security warns that, despite continued cooperation in key sectors, deep strategic mistrust continues to cloud relations between Washington and New Delhi.
The report, 'Repairing the Breach: Getting US-India Ties Back on Track', argues that tensions triggered in 2025 have not fully subsided and will take time to repair.
Authored by Lisa Curtis, Keerthi Martyn, and Sitara Gupta, the report says the relationship "stumbled badly" in the second half of 2025, citing differences over how a ceasefire between India and Pakistan was reached and the imposition of steep US tariffs on Indian exports.
According to the report, the February 2026 framework for an interim trade deal offers "an opportunity for the two nations to get the relationship back on track", but rebuilding trust will require sustained effort.
The paper underscores that while economic, defence and technology ties have largely held, divergences over Pakistan and terrorism remain fundamental.
It notes that New Delhi has been disappointed by what it sees as insufficient US attention to terrorism emanating from Pakistan, even after Washington designated The Resistance Front as a terrorist group.
The report also highlights India's long-standing opposition to any external involvement in the Kashmir matter, warning that US statements suggesting mediation risk further damaging trust.
To restore ties, it recommends that Washington "refrain from talking about mediating the India-Pakistan dispute over Kashmir" and instead focus on areas of convergence.
However, the report points to continued momentum in defence cooperation. India and the United States renewed a 10-year defence framework agreement last year, covering intelligence sharing, maritime security, and defence technology collaboration.
Economic engagement has also shown signs of recovery. The interim trade deal announced earlier this year reduces tariffs and includes commitments to expand trade in key sectors.
The report identifies energy, critical minerals, pharmaceuticals, and advanced technologies, such as artificial intelligence and semiconductors, as priority areas for deeper cooperation.
It notes that India's reforms in nuclear energy and investments in critical minerals position it as a potential partner in building resilient supply chains, particularly as both countries seek to reduce dependence on China.
At the same time, US investments in India's digital infrastructure and data centres are seen as reinforcing long-term technological interdependence.
However, the report cautions that unless political mistrust is addressed, these gains could be undermined.
It calls for renewed focus on counterterrorism cooperation, including efforts to disrupt terror financing and strengthen coordination at global forums.
The paper concludes that India will play a "vital role" in shaping the Indo-Pacific and that the trajectory of US-India ties will be critical in determining the regional balance of power.
It adds that the quality of the partnership will influence whether there is a balance of power in the region or whether China succeeds in becoming the dominant force.
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