Transactional Turn in India-U.S. Relations: Safeguarding India's Interests
Introduction
Prime Minister Narendra Modi’s recent visit to Washington marked a significant step in strengthening India-U.S. bilateral relations. The visit, which took place shortly after U.S. President Donald Trump assumed office, focused on key areas such as trade, defense, and strategic cooperation. However, the transactional nature of the discussions suggests that India must carefully assess its interests and push back against policies that may not align with its economic and strategic priorities.
Key Developments from Modi’s U.S. Visit
1. Economic and Trade Cooperation
Launch of ‘Mission 500’, aiming for $500 billion in bilateral trade by 2030.
Initiation of Free Trade Agreement (FTA) discussions, with phase one expected this year.
Increased Indian purchases of U.S. energy, oil, and defense equipment, aimed at balancing the $45.7 billion trade deficit.
2. Strategic and Defense Partnerships
Establishment of COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology for the 21st Century) for streamlined cooperation across military and technology sectors.
Rebranding of CET (Critical and Emerging Technologies) to TRUST (Transforming the Relationship Utilizing Strategic Technology), with a focus on:
Semiconductors
Quantum computing
Artificial Intelligence (AI) infrastructure roadmap
Approval of extradition of Tahawwur Rana, involved in the 26/11 Mumbai attacks, to India for trial.
3. Continued Indo-Pacific and Quad Engagement
Strengthened commitments towards Indo-Pacific cooperation.
Upcoming Quad Summit in Delhi, reinforcing strategic alliances among India, the U.S., Japan, and Australia.
Challenges in India-U.S. Relations
While the visit established a positive outlook, there are underlying challenges that India must address:
Trade Barriers and Counter-Tariffs
No significant softening of U.S. tariffs and reciprocal taxes on Indian exports.
Potential economic hurdles for Indian businesses due to new U.S. trade policies.
Deportation and Immigration Issues
U.S. military deportation flights of undocumented immigrants remain a pressing concern.
Need for diplomatic efforts to safeguard Indian migrants' rights in the U.S.
Over-Reliance on U.S. Energy and Defense Imports
While energy purchases help reduce the trade deficit, they also increase dependency on the U.S.
India must focus on diversifying its energy sources and strengthening indigenous defense production.
India’s Roadmap to Safeguard Its Interests
To ensure a balanced and mutually beneficial relationship, India must adopt a strategic approach:
Assertive Trade Negotiations
Push for favorable trade agreements while countering unfair tariff impositions.
Strengthen domestic industries to reduce reliance on imports.
Strengthening Indigenous Defense and Technology Sectors
Invest in domestic semiconductor and AI infrastructure.
Foster Make in India initiatives to reduce dependence on U.S. defense imports.
Diplomatic Engagement on Immigration Policies
Advocate for humane immigration policies to protect Indian workers and students in the U.S.
Strengthen consular support for affected Indian citizens.
Strategic Diversification of Global Partnerships
Expand economic and defense collaborations with other global powers (EU, Russia, Japan, Australia).
Leverage regional alliances such as BRICS and ASEAN for geopolitical balance.
Conclusion
While India-U.S. relations have seen positive momentum, their transactional nature necessitates careful assessment and strategic pushback where required. India must prioritize its long-term economic and strategic interests, ensuring that bilateral cooperation remains mutually beneficial and not one-sided.
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By : team atharvaexamwise
