Umaima Ali<\/p>\n
When leaders of the world\u2019s largest democracies share a stage, the inevitable question arises: \u2018What\u2019s next?\u2019 This sentiment resonated among policymakers following Modi\u2019s recent visit to the United States (US). With trade at the forefront, Indian Prime Minister Modi and US President Trump committed to increasing collaboration in defence, technology, and other key sectors. President Trump has repeatedly criticised India\u2019s trade policies, calling it the \u2018Tariff King.\u2019 In 2024, while the US was India\u2019s largest trade partner, India ranked tenth among US trading partners. Despite this, the US trade deficit with India reached nearly USD 50 billion last year. Notably, the US maintained a trade-weighted average tariff rate of approximately 2.2%, compared to India\u2019s 12%.
\nIn what appeared to be a strategic prelude to Modi\u2019s visit to Washington, India\u2019s Union Budget 2025-26 signalled an open stance by announcing 55% reductions in Basic Customs Duty (BCD) on high-end American automobiles and 10% on fish hydrolysate, a move that benefits US exports. These reductions, however, were not enough to satisfy a profit-driven US strategy. True to his transactional mindset, President Trump announced reciprocal tariffs to ensure a fair market exchange. Reciprocal tariffs, if implemented, would benefit US manufacturers but the less competitive Indian companies would face headwinds. The intensified competition could trigger a \u2018survival of the fittest\u2019 scenario in which many average local companies risk being edged out.
\nBoth leaders agreed to more than double bilateral trade under \u2018Mission 500\u2019, a move rich with opportunities but one that subtly undercuts Modi\u2019s MEGA partnership. MEGA is a term introduced by Modi that combines MIGA (Make India Great Again) and MAGA (Make America Great Again) initiatives. While the MEGA partnership envisioned mutual gains, the surge in US investments risks tilting value creation and high-tech manufacturing towards America. Instead of positioning India as a production hub, these investments would treat it primarily as a consumer market. This certainly downplays MIGA and works well for MAGA.
\nModi\u2019s US visit highlights the use of techplomacy. TRUST (Transforming Relationships Utilising Strategic Technology) was secured to promote the application of emerging technologies in areas like defence, semiconductors, quantum, biotechnology, energy and space. To expand tech cooperation in space, plans for an early launch of NISAR, a joint Earth-observing mission between the NASA and the Indian Space Research Organisation (ISRO), were discussed.
\nModi\u2019s meeting with Elon Musk signals cooperation in emerging technologies and opens the doors for Starlink in India. However, Starlink\u2019s entry into India comes at a heavy cost to the domestic market. Recently, Indian company Reliance pushed for an auction, but the Indian government backed Musk\u2019s preference for administrative allocation. According to analysts, an auction could deter foreign competitors, while Reliance fears losing broadband and future telecom customers to Starlink.
\nDuring his visit, Modi also invoked the adage \u2018Vasudhaiva Kutumbakam\u2019, signalling India\u2019s commitment to upholding democratic principles on the global stage. Modi\u2019s promise was materialised by his government\u2019s decision to sign the \u2018Artificial Intelligence Action Summit Declaration\u2019 at the recent Paris AI Action Summit. However, a notable contrast emerged as the US opted not to sign the pact, raising questions about the depth of the Modi-Trump \u2018bromance\u2019 showcased during the Washington visit.
\nTrump aims to expand US military sales, including a potential offer for F-35 stealth fighters, to India. Although Modi indicated openness to the proposal, India\u2019s past defence procurement decisions suggest a cautious approach. In the past, India reversed its decision to buy American F-16s in favour of French Rafale. It remains uncertain whether India will proceed with the F-35 deal, given its preference for diverse suppliers and self-reliance in defence. With Musk calling it a \u2018broken jack of all trades\u2019 back in November last year, the F-35 stealth fighter is criticised for its high cost and software problems. India is likely to conduct a cost-benefit analysis before committing to the F-35 programme. In addition, these deals take time to materialise. India\u2019s prolonged defence negotiations are evident in its recent purchase of 31 MQ-9B drones, a deal that took over six years to finalise.
\nModi and Trump\u2019s commitments were reinforced by a mutual resolve to counter \u2018Islamic extremism.\u2019 To enhance security and prevent future attacks, both leaders pledged to strengthen collaboration in addressing threats posed by terrorist organisations. However, India conveniently avoided the issue of targeting Sikh separatists. When pressed on this matter, Trump also refrained from a direct response but highlighted Indo-US collaboration on crime. This selective approach to addressing crime was evident when Modi sidestepped a question about Gautam Adani, the Indian billionaire indicted by a US grand jury last year. Similarly, both leaders overlooked concerns about crimes in Bangladesh. Trump dismissed any US involvement, effectively leaving the issue to Modi without further discussion.
\nModi\u2019s use of international platforms to target Pakistan reflects a calculated strategy inspired by Chanakya Kautilya\u2019s principles of statecraft. However, India\u2019s own history of state-sponsored terrorism, false flag operations, and human rights violations in Indian Illegally Occupied Jammu and Kashmir serves as evidence of its duplicity. Pakistan\u2019s Foreign Office called the joint statement on Pakistan one-sided, misleading, and contrary to diplomatic norms. Pakistan also voiced concerns over the potential transfer of advanced military technologies to India given how such measures would jeopardise regional strategic stability.
\nModi\u2019s US visit secured a few tech and defence gains but failed to counter Trump on tariffs. While both leaders talked about common interests in security and defence, they strategically sidestepped contentious issues. Modi could leverage this momentum to build greater strategic pressure on Pakistan. To mitigate these risks, Pakistan must proactively engage in bilateral dialogues with the US to address core challenges and safeguard its interests. A robust public diplomacy campaign is essential to highlight Pakistan\u2019s counterterrorism efforts and amplify its achievements.<\/p>\n
The writer is a freelance columnist.<\/p>\n","protected":false},"excerpt":{"rendered":"
Umaima Ali When leaders of the world\u2019s largest democracies share a stage, the inevitable question arises: \u2018What\u2019s next?\u2019 This sentiment resonated among policymakers following Modi\u2019s recent visit to the United States (US). With trade at the forefront, Indian Prime Minister Modi and US President Trump committed to increasing collaboration in defence, technology, and other key […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[13590],"class_list":["post-462818","post","type-post","status-publish","format-standard","category-article","tag-umaima-ali"],"yoast_head":"\n