India-US Trade Deal Finalisation
The finalisation of the India-US trade deal marks the end of a turbulent year in bilateral relations, paving the way for a focus on broader agendas like defence industrialisation and strategic cooperation in the Indo-Pacific.
Key Aspects of the Trade Deal
- Emphasis on Quick Resolution: Prime Minister Narendra Modi and President Donald Trump prioritised a swift trade deal, highlighting the importance of bilateral relationships.
- Focus Areas:
- Defence industrialisation
- Critical and emerging technologies
- Strategic coordination in the Indo-Pacific
- Imaginative diplomatic work is needed to evolve the bilateral commercial ties onto a sustainable growth path.
Challenges and Diplomatic Resilience
- Modi’s Approach: Displayed resilience and patience during the tariff challenges presented by Trump.
- India's Diplomatic Strategy: Opted for quiet, persistent engagement without capitulating or escalating the issues.
Durability of India-US Partnership
The relationship is founded on a deep structural foundation, unshaken by personality clashes or serious differences.
- Strategic Ballast: Critical in overcoming challenges beyond trade, such as complications involving Pakistan and Russia.
- India's economic gap with Pakistan obviates any return to strategic parity between the two.
Geopolitical Dynamics
- Russia's Role: While important, Russia's influence in India's strategy has waned relative to its engagement with the US.
- China's Influence: Both US and India see China as a key variable, aligning closely to prevent any single power from dominating the Indo-Pacific.
Commercial and Technological Integration
- Economic Diplomacy Shift: India aims to strengthen commercial ties with the US and Europe.
- India's prosperity and technological advancement depend on these Western connections.
Concluding Remarks
With the resolution of trade disputes, India and the US can advance a partnership shaping the balance of power in Asia and beyond.
