India and the US both are highly democratic countries since their independence. Both countries are trying to establish peace and stability in the world. Both countries have been operating their foreign policy according to highly democratic values. There have been many ups and downs in the relations between the two countries during the cold war era. The relations began to normalize when India adopted the policy of liberalisation. The two decades of the 21^st century can be called a highly integrated relationship. The rebalancing strategy of the US in the Indo-Pacific Region has been on the scanner of the strategic community the world over in general and India in particular, ever since President Obama and his team in the administration have issued a series of announcements to step up and intensify the US presence in the region. These announcements have received worldwide attention because of its implications for both China and India. In his address to the Australian Parliament on November 17, 2011 Obama said, “As it has been to our past, our alliance continues to be indispensable to our future. So, here, among close friends, I’d like to address the larger purpose of my visit to this region our efforts to advance security, prosperity and human dignity across the Asia-Pacific. For the United States, this reflects a broader shift. After a decade in which we fought two wars that cost us dearly, in blood and treasure, the United States is turning attention to the vast potential of the Asia-Pacific region”…”as President, I have therefore made a deliberate and strategic decision as a Pacific nation, the United States will play a larger role in shaping this region and its future, by upholding core principles and in close partnership with allies and friends”