India’s Diplomatic Balancing Act
As Donald Trump, the self-proclaimed “Tariff Man,” gears up for his second term, his focus on global trade has reignited concerns among the world’s major economies. Earlier this month, he targeted BRICS nations, threatening steep tariffs if they pursued a new currency or replaced the US dollar in global trade.
India, a founding member of BRICS alongside China and Russia, finds itself at a unique crossroads. While other members often align with anti-American sentiments, New Delhi has maintained a “pro-America” stance, positioning itself as a potential ally in mitigating tensions.
Trump and Modi: A Relationship of Opportunity
Despite being called a “very big abuser” of the US-India trade relationship during Trump’s campaign, India has fostered a strong rapport with the former president. The bond between Trump and Indian Prime Minister Narendra Modi, strengthened during events like “Howdy Modi” in Texas and “Namaste Trump” in Gujarat, underscores a unique diplomatic connection.
Analysts suggest this relationship could benefit India during Trump’s second term, allowing New Delhi to navigate issues like trade imbalances and geopolitical challenges with finesse.
Challenges of Tariff Policies
Trump’s proposed universal tariffs, such as the 10% levy he’s floated, could impact India significantly. The US maintains a trade deficit with India, importing $73 billion worth of goods from India compared to $35 billion in exports. However, experts believe India’s growing importance as a manufacturing hub, particularly for companies like Apple, may soften the blow.
Leveraging Strategic Partnerships
India’s ability to remain pragmatic and transactional in its dealings with Trump could prove advantageous. During his first term, Trump granted India exemptions from sanctions on Iran, enabling it to continue vital operations at the Chabahar Port. This demonstrated Trump’s willingness to strike mutually beneficial deals when aligned with his strategic goals.
Geopolitical Alignments
Trump’s second term could further align with India’s stance on issues like Ukraine. Both Trump and Modi have refrained from overtly criticizing Russia, opting instead to advocate for peace. This shared perspective could strengthen their partnership on the global stage.
Optimism in New Delhi
Despite potential turbulence, New Delhi remains optimistic about maintaining its delicate balance between pursuing national interests and aligning with Trump’s often unpredictable policies. India’s capacity for adaptability and strategic deal-making positions it as a critical player in navigating this complex geopolitical landscape.
CNN, BBC, REUTERS, GUARDIANS
