Unlocking Strategic Flexibility: The Key to India’s Evolving US Policy

Prime Minister Narendra Modi’s meeting with U.S. President Donald Trump was a critical moment for India-U.S. relations. Modi showcased impressive diplomatic skills to engage with Trump, who is known for his tough negotiating style and straightforward demands. Modi’s approach allowed India to highlight long-term goals while working within the current dynamics of America’s foreign policy.

India is not a country that simply follows others, especially when it comes to its ambitions on the global stage. While it recognizes the importance of a strong partnership with the U.S., it also understands that economic and military cooperation is key to its rise as an important power. Modi opted for a smart diplomatic strategy. This included making minor concessions on issues like illegal immigration while focusing on building a robust partnership rooted in mutual interests.

Trump himself acknowledged Modi’s tactics, labeling him “a much tougher negotiator.” This admission was significant, considering Trump’s usual bravado about winning negotiations. It showed that Modi came prepared to negotiate with an emphasis on creating mutual benefits rather than simply appeasing U.S. demands.

One of Trump’s objectives was to encourage India to purchase more American-made defense equipment. His announcement of plans to boost military sales to India indicated a win for the U.S. However, this could benefit India as well. The Indian military seeks diverse sources for its arms, and cooperation with the U.S. could enhance its defense capabilities, particularly against China.

Interestingly, from 2019 to 2023, only 13% of India’s arms imports came from the U.S., trailing behind France and Russia. Despite the push for more domestic production, India still needs to make some international purchases to address immediate security concerns. Thus, Modi’s plan to buy U.S. defense systems while accelerating the development of local production was a sound strategy.

While discussions about acquiring advanced technology like the F-35 fighter jets pleased Trump, Modi’s focus on joint development and technology transfer is even more crucial for India’s long-term strategy. Initiatives like the Autonomous Systems Industry Alliance (ASIA) aim to enhance India’s maritime capabilities, which aligns with both nations’ interests in maintaining balance against China’s growing power.

Trade was another hot topic. Modi entered talks with proactive measures to ease potential tariffs from the U.S. By lowering import taxes in key sectors, he sought to navigate Trump’s protectionist stance. After the meeting, Trump expressed optimism about upcoming trade deals, indicating that India would significantly increase its purchases of American oil and gas.

However, Modi stood firm on the need for a fair trade agreement, seeking collaboration rather than capitulation. This approach helped manage tensions, especially since India has a smaller trade surplus with the U.S. compared to China’s massive surplus. By differentiating itself from China, India aims to reduce the chances of unnecessary trade conflict.

India’s position on global currency and its commitment against the de-dollarization push from China and Russia are also significant talking points with U.S. leaders. While Trump may prioritize economic gains, it’s essential for the U.S. elite to recognize India as a democratic partner combating authoritarian influences in global affairs.

In this complex landscape, India must embrace strategic flexibility. Balancing its national interests with those of the U.S. will be crucial for the future of this bilateral relationship. Ultimately, the partnership with the U.S. serves India’s long-term national interests, and Modi’s diplomatic efforts will be key in preserving and strengthening this vital alliance.

Sreeram Chaulia is the author of “Friends: India’s Closest Strategic Partners.” The perspectives shared are his own.

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Prime Minister Narendra Modi,United States,bilateral relations,India-US friendship,trade agreements