India-US Trade Talks
Trade discussions between India and the United States have resumed. President Donald Trump has agreed to dispatch a US delegation to India for negotiations. Following harsh remarks directed at India by President Trump and his advisor Peter Navarro, it appears that the US is now attempting to manage the situation. Diplomatic channels are being utilized for trade discussions, with efforts being made at various levels. India's Ambassador to the US, Vinay Mohan Kwatra, has engaged with several key US lawmakers to discuss bilateral trade relations and has shared information about diplomatic efforts to resolve the Ukraine conflict. Union Commerce Minister Piyush Goyal has also expressed optimism about the trade talks. Donald Trump has acknowledged that relations between the two nations have become strained due to the imposition of heavy duties on India for purchasing oil from Russia. It seems Trump is in a quandary regarding India, as there is a clear inconsistency in his policies, and he finds himself ensnared in a situation of his own making. He now feels compelled to take action.
Donald Trump and Prime Minister Narendra Modi indicated improvement in trade relations. President Trump said that he is confident that the ongoing talks between Washington and Delhi will soon reach a better conclusion. Trump also said that he will talk to Prime Minister Modi in the coming weeks to eliminate all kinds of obstacles. Trump wrote in a post on his social media platform Truth Social, 'I am happy to inform that talks are going on to remove the trade barrier between India and America. I am looking forward to talking to my very good friend, PM Modi in the coming weeks. I am confident that there will be no difficulty in reaching a successful outcome for both great countries'. In response to this post of President Trump, Prime Minister Modi also wrote in a post on social media platforms, 'India and America are good friends and natural allies. I am confident that our trade talks will pave the way to open unlimited possibilities of India-US partnership. Our teams are working hard to complete these discussions as soon as possible.
After the way India and China have shown the whole world the way out of America's trap, Trump has been trying to placate India. On one hand, Trump wants to strengthen trade relations with India, while on the other hand he asks European countries to impose 100 percent tax on India and China. The domestic politics of that country is also a big reason for Trump's anti-India statements. Trump's slogan of Make America Great Again is also a big reason. Trump wants to show the people of the country that he is doing all this to save industries and jobs in America. Voices have started rising within America against Trump's tariff policy. Trump also knows that India cannot be completely isolated to balance China. India has already made it clear that its foreign policy is independent and it is not going to come under anyone's pressure. India has clearly refused to bow down to any pressure and has continued to buy oil and weapons from Russia. Although the Modi government had previously stopped oil imports from Iran and Venezuela due to US warnings, this year the matter with Russia became very complicated. Considering our friendship with Russia and India's domestic needs, buying oil is very important. This protects India's interests. Secondly, India cannot make such an agreement with America regarding agricultural and dairy products which harms the farmers of India.
India is firm against opening the agriculture sector for imports to protect farmers. The US is pressing for opening the agriculture and dairy sector because such an agreement will set a precedent for future agreements with the European Union and Japan. Trump is putting more pressure on India because this step is more to create geopolitical pressure than trade. It is possible that the US may present some new proposals in the trade talks, which may also include arms deals. India will have to proceed very cautiously, because Trump cannot be trusted much now. It remains to be seen what the outcome of the talks is in the coming days. Apart from tariff cuts, Boeing may press for large-scale commercial purchases of aircraft, helicopters and even nuclear reactors. Some solution will emerge in the talks between Trump and Prime Minister Narendra Modi. The US will focus on manufactured goods that are capital intensive, while India will focus on goods that are labor intensive. Trump may finally agree to do business with India after some negotiation. Now the ball is not in India's court but in America's court.