The U.S. could be anticipating billions of dollars in new deals as India lifts its foreign direct investment cap on the defense sector to 49 percent, which it announced in the annual budget for 2014-15.
Though not unlikely, the road towards a closer alliance with India – economic or strategic – might call for a lot of effort on America’s part to patch an edgy past with new Prime Minister Narendra Modi, who in 2005 was denied diplomatic visa to enter U.S. on account of the Obama administration’s allegation of Modi’s role in the 2002 communal riots in his home state, Gujarat.