Privatisation U-Turn

In a significant departure from its earlier policy focus, the Union government is stepping back from aggressive privatisation efforts and is instead investing heavily in reviving ailing state-run enterprises.

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The call on Monday between US President Donald Trump and Prime Minister Narendra Modi is a clear signal of the strategic importance of US-India relations. What stands out, however, is how both leaders framed the relationship – not just in terms of bilateral benefits, but as a partnership vital for global stability and prosperity. While the warm words exchanged, such as Mr Modi calling Mr Trump a "dear friend," reflect their personal rapport, the discussion reveals critical opportunities and challenges that require careful navigation. One of the key takeaways from the conversation was Mr Trump's emphasis on "fair" trade and his push for India to increase its procurement of American-made security equipment. While it is true that the US remains India's largest trading partner, and bilateral trade crossed $118 billion last year, the surplus in India's favour continues to be a sticking point. President Trump's comments about India being a "big abuser" on trade during his re-election campaign still looms large over the relationship. However, this moment provides an opportunity for India to engage constructively and secure more favourable trade terms while ensuring its own economic interests remain protected. Another sensitive issue discussed was immigration, particularly the need for India to address irregular migration. Mr Trump has been vocal about cracking down on illegal immigration, urging Prime Minister Modi to take back Indian nationals residing in the US unlawfully. While this is a contentious issue, the acknowledgment of India's significant contribution to the US skilled workforce, especially through H-1B visas, is notable. Mr Trump's openness to legal migration offers India a platform to negotiate better opportunities for its professionals abroad.