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Millennium Post Delhi
|February 20, 2025
Trump's renewed outreach to Russian President Vladimir Putin, aimed at ending the war in Ukraine, introduces a diplomatic variable for India
Against the backdrop of an increasingly volatile geopolitical landscape, US President Donald Trump and Indian Prime Minister Narendra Modi met at the White House on February 13, 2025. The summit, brimming with diplomatic symbolism and hard-nosed negotiations, underscored a recalibration of Indo-US ties, with trade, defence, and strategic alliances taking centre stage.
Can 'America First' and 'Atmanirbhar Bharat' coexist? At the heart of the Trump-Modi dialogue was a push to deepen economic ties, targeting bilateral trade beyond USD 500 billion by 2030. In 2024, Indo-US trade stood at approximately USD 190.1 billion, with India enjoying a USD 50 billion surplus. To address this, Modi proposed expanding India's imports of American energy, targeting an increase from USD 15 billion to USD 25 billion in the short term.
However, Trump's persistent demand for tariff reciprocity remains a sticking point. India's average tariff rate of 12 per cent, compared to the US's 2.2 per cent, has fuelled disputes. India's decision to reduce tariffs on American bourbon whiskey from 150 per cent to 100 per cent is a small gesture, but larger concerns over market access, regulatory hurdles, and the fundamental alignment of 'Make America Great Again' with 'Make in India' policies remain unresolved. Critics argue that India's move to increase US energy imports raises questions about the long-term feasibility of self-reliance if it leads to overdependence on American oil and gas.
This story is from the February 20, 2025 edition of Millennium Post Delhi.
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