In recent times, the US has been waging a ‘war of words’ against India. Amongst many allegations, the US has alleged that India indulges in ‘strategic freeloading’, pushing the Indo – US economic relations into a (profiteering) one-sided affair.
During the Cold War, South Korea, Japan, European NATO allies and even Taiwan benefitted from the US-crafted strategic freeloading – something that continues even now. India, on the contrary, was at the receiving end of American strategic manipulations within South Asia during the same period. Thereafter, the so-called ‘strategic freeloading’ has been, if at all, a two-way road between the two countries.
Where and why ‘strategic freeloading’ exists
The concept of strategic freeloading is premised upon many shared assumptions. Foremost is the asymmetrical nature of a bilateral relationship. The powerful of the two is the security provider to the lesser mortal, often at a subsidised cost. The recipient country is agreeable to the security umbrella, formalised through treaties or unilateral acts. The US is long-committed to protect its NATO allies through a formal military alliance for collective security. Japan enjoys American security umbrella under a bilateral 1960 Treaty. Similarly, the US is committed through Taiwan Relations Act (1979) to protect Taiwan.
It emerges that in international relations business, these less powerful countries are often guided by the big brother. In return, they get to focus on their national development and growth. That way, strategic freeloading does have some instrumental utility. However, strategic freeloading is typical of small powers that bandwagon upon the superpower or great power resources.
India has always been a middle power with great power aspirations. Like most middle powers, it always had sufficient resources and wherewithal and avoided one-way strategic freeloading.
India’s approach to building capabilities
Except for Peter Navarro, the Trade Counselor to the US President and some other elites in Washington, most Americans accept India’s strategic autonomy and relations with all major countries. India is friendly and communicative with the US-led group as well as Russia and China. India is the only common member of BRICS as well as QUAD.
Peter Navarro’s allegation of strategic freeloading probably means that India has (apparently) piggybacked on US support to push forth its own agenda in international relations. However, despite declared American Presidential statements in past, the US has done little to actively support India’s case for permanent membership to the UN Security Council. Similarly, the US made statements in past that it would facilitate India’s quest for the great power status!
In reality, India is self-navigating its rise to developed status by 2047 through emphasis on comprehensive national power (CNP). India is the only major power with a consistent GDP growth rate of more than 6 per cent.
India’s growth momentum is being engendered not through any external stimuli or benevolence of some country but through Indian leadership’s carefully constructed ‘peace dividend’ momentum.
US benefits from ‘strategic opportunities’
If the American elites perceive India’s trade surplus of $40 billion with the US as ‘strategic freeloading’, they fail to take cognisance of ‘strategic opportunities’ India creates for them in several ways.
First, India and the US have a substantive strategic relationship in defence sector. According to an American Congressional Research Service Report (March 2025), India has imported more than 10 per cent of its global arms from the US after 2008. India is now the largest operator of C-17 Globemaster heavy transport and P-81 Poseidon maritime patrol aircraft outside the United States. Since 2018, India is a major ‘defence partner’ for the US facilitating strategic collaborations that benefit both sides.
Second, India is the ‘big emerging market (BEM) for America. Apart from the billions of dollars that they get through remittances for Indian students in US universities, American companies like Google, Meta, Amazon, IBM, Microsoft, Apple, HP, etc. are generating huge revenues in India. Facebook, a subsidiary of Meta, has the largest user base in India at 383.5 million people, double of what the US has. Collectively, the revenues generated from these sources is many times more than America’s trade deficit figures with India. They create jobs and enrich the US GDP and society. Recently, ISRO paid more than Rs 500 crore to the US for the space mission that carried Group Captain Shudhanshu Shukla as one of the mission members. Indians pay for everything!
Third, India is an important pillar in the Asian balance of power. America’s allies in the Asia – Pacific are small and insignificant players. Their collectivity cannot bring stability to Asian security project on their own. As China builds up its CNP and reduces its power gap with the US, India will have a big utilitarian role in stabilising Asia. A democratic India would be a natural port of call for the US policy makers. The US National Security Strategy (2022) clearly recognised India as the world’s largest democracy and a defence partner with which the US will work bilaterally and multilaterally for the shared ‘vision of a free and open Indo-Pacific’.
A relationship with two-way flow of benefits
In an anarchical world structured on relative national powers and capabilities, the US does ‘no favours’ to India in any field, as there is equal and commensurate reciprocation from the latter. The US probably needs India as much as the vice versa. Therefore, ‘strategic freeloading’ is a two-way process.
Navarro’s comments, however, reflect a patron-client mindset. Such comments are also reflective of hegemonic complex, wrong strategic instincts and poor cognitive mapping of India’s military, economic and political profile. If such personality-based statements proliferate as official narratives, then the US’ strategic credibility, prestige and status would decline in global politics.
Such statements, if iterated, will revert the bilateral relationship to the ‘estranged democracies’ days of the Cold War.
Fortunately, Navarro’s views remain a minority view amongst America’s strategic thinkers. It is better to pass off such misconstrued allegations and build upon on the three decades-old strong India – US relationship.
(The author is in the Indian Defence Accounts Service. Views are personal and do not represent the stand of this publication.)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
