When they signed the New Strategic Partnership (NSP) Agreement, US President Donald Trump and Indian Prime Minister Narendra Modi declared their intent to establish a new strategic partnership.
Both countries signed the NSP Agreement in August this year, two months before their respective elections in 2019.
The US and Indian governments have signed the Strategic Partnership Agreement (SPOA) which is aimed at strengthening economic and strategic cooperation between the two countries.
The NSP agreement includes a number of economic, social and cultural projects, including a new naval base at Srikakulam, a new airport at Mumbai, a major road linking Hyderabad to the neighbouring state of Maharashtra and the construction of a new coastal port in the Gulf of Suez.
The agreement also lays out a new framework for economic cooperation between India and the US.
The US is expected to establish an economic corridor through the Gulf to the Indian Ocean, with a planned extension of that corridor to the Arabian Sea.
The route will also link New Delhi to Shanghai, the main port of China, as well as the United Arab Emirates, Bahrain and Saudi Arabia.
India is a major market for US companies, especially for its large investments in infrastructure, manufacturing and technology.
It is also the country’s second-largest arms importer after the US, with more than a billion dollars in investments in India last year.
The Indian government is also planning to spend more than $300 billion on the infrastructure, infrastructure projects and services of the US under the NPSA.
The Indian economy is expected in 2020 to expand at around 7 per cent, according to the National Institute of Finance.