Paper: GS – II, Subject: International Relations, Topic: India’s foreign policy, Issue: India’s response to the U.S actions.
Context:
Trump imposed a 25% tariff on Indian goods, disrupting India’s trade expectations despite ongoing negotiations. India is grappling for response.
Key Highlights:
Trump’s Tariff Shock:
- Trump’s tariff announcement came after India assumed the pause in Operation Sindoor (cross-border military operations) was linked to U.S. intervention.
- Trump tweeted credit for India halting the operation, implying a diplomatic or personal victory.
- India had recently concluded a 15% tariff deal with the EU and Japan when the Trump shock occurred.
India’s Diplomatic Dilemma:
- Since 1971, India has struggled to balance relations between USA and China on the issue of Pakistan, USA and Russia for defence ties.
- India traditionally tried to keep the US neutral on India-Pakistan matters.
Operation Sindoor aftermath:
- PM Modi avoided thanking Trump publicly or showing dependence on U.S. intervention in a bilateral matter. Doing so would have contradicted India’s longstanding diplomatic principle of keeping third-party mediation out of India-Pakistan issues.
Ideal approach:
- After the ceasefire, PM Modi could have diplomatically acknowledged Trump’s role by thanking Vice President Mike Pence or Secretary of State without explicitly crediting Trump or the U.S.
- India could have used this opportunity to negotiate trade relaxations or avoid tariffs.
Impact on US-India Ties:
- President Trump’s ego may have been bruised by India’s diplomatic distance, contributing to the tariff imposition.
- The lack of acknowledgment may have deepened perceptions of India being unfriendly to Trump and prompted him to retaliate via tariffs.
- During Trump’s presidency, India failed to maintain strategic neutrality without offending major powers and balance Trump’s interests without undermining its diplomatic norms.
Lessons for Indian Foreign Policy:
- India’s rigidity on non-alignment and diplomatic protocol may be ill-suited to transactional global politics.
- Future strategy must allow flexible diplomacy, especially during sensitive geopolitical moments (like ceasefires).
- India’s silence may be perceived as strategic but could carry economic costs, like punitive trade measures.
Conclusion:
A more nuanced diplomatic approach post-ceasefire could have prevented the tariff imposition, preserved India’s policy on bilateral conflict and improved US-India trade ties under Trump.
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