ABSTRACT
This chapter offers a critique of major challenges facing the multifaceted ties between India and the United States, and to spell out future directions in their relationship. It examines the challenges facing Indo-US relations in critical areas such as bureaucratic perceptions on both sides, the Afghanistan imbroglio, Iran's nuclear issue, India's strategic autonomy, and its nuclear liability law. Most of the challenges to Indo-US relations stem from their divergent national interests and contrary perceptions on global and regional issues such as climate change, human rights, and sanctions on Iran. Despite the shared democratic values and common security interests, Indo-US relations are hamstrung by uncertainties and, at times, punctuated by eccentricities. A dramatic transformation occurred in Indo-US relations during the presidency of George W. Bush, who was not only committed to warming up US relations with India but also wanted to make India a major global player in the 21st century.
