Increasingly, the UPA government is pursuing a foreign policy which detractsfrom the commitment made in the Common Minimum Programme for an independentforeign policy. The Indo-US "strategic partnership" forged during thePrime Minister's visit to Washington in July 2005 and President Bush's visit toIndia in March 2006 in the second year of the UPA government is of seriousconcern. Under the guise of a nuclear cooperation agreement, the United Statesis extracting a heavy price from India. India changed its stand on the Irannuclear issue and it has embarked on a defence cooperation which is increasinglyaligning India as a strategic partner of the USA in Asia. Not only that, theUnited States is directly exercising influence on domestic policy making.Whether it be our energy policy, the knowledge initiative in agriculturalresearch with the participation of US multinationals research (the Iran gaspipeline project has been virtually shelved), the demand for furtherliberalisation of the financial sector, the demand for privatisation of basicservices and infrastructure development, - all these are part of the neo-liberalpolicies which are being implemented in India with open US backing.