A geo-economics and geopolitical analysis of the shifting dynamics of the bilateral relationship between the USA and India has significant implications for the IPE in the Indo-Pacific region. This paper aims to evaluate the interaction process between the US and India, utilizing major theories related to China's emergence. This work, guided by the methodologies of realism, neoclassical realism, constructivism, and geo-economics, analyzes the strategic coordination of security defense technology and economic cooperation. It also scrutinizes how the cooperation impacts regional players such as ASEAN, Japan, and Australia, balancing the divergence of geographical perspectives and India's decoupled strategic sovereignty. The last chapter of the study analyses the transformation of the Indo-Pacific by the partnership and presents ways to advance this alliance. In fact, this paper will assist in developing a theoretical understanding regarding the great-power rivalry with the region and the importance of the bilateral partnership for the maintenance of the rule-based international order.