India-US trade deal nearing surface!

Modinomics vs. Trumponomics: Trump's tariff bombardment sharpened the divide, industry policymakers have been strung along for too long

- Palazhi Ashok Kumar

After eight months of grandstanding, stalled meetings and diplomatic brinkmanship, India and the United States appear ready at last to seal an interim trade pact-one that insiders now call "not optional, but unavoidable".

What began in March 2025 as a routine negotiation has since turned into a geopolitical tugof-war, fuelled by President Trump's fiery campaign for "reciprocal tariffs". More than half a dozen rounds-split between Washington's power corridors and New Delhi's strategic backrooms-have produced little beyond irritation. Trump's repeated claims of a "deal soon", "deal ready", "very close" have worn thin across world capitals.

"Markets, industry and policymakers have been strung along for too long," said the former chairman of a BSE listed firm. "The patience of an entire economy has been stretched." Now, however, the deadlock may finally be easing.

A senior Washington insider told FPJ Money late Saturday: "An interim deal is imminent. Both sides are exposed, and the days of diplomatic hide-andseek are over. Security, rare earths, critical minerals, agriculture, textiles, electronics, AI, services, jobs, pharmaceuticals everything is intertwined." At the heart of the impasse lies what diplomats privately call "Modinomics versus Trumponomics"-two clashing economic worldviews.