Paper: GS – II, Subject: International Relations, Topic: Agreements involving India and or affecting India’s interests, Issue: Strategic Convergence in India–US Relations.
Context:
India–US finalised a long-pending trade deal, cutting tariffs on Indian goods from 50% to 18% after months of negotiations, easing trade tensions and marking a reset in bilateral economic relations under sustained US pressure.
Key Highlights:
Key Points:
Trade Deal Finalization:
- Marks the end of a turbulent period in India–US relations.
- Sets the stage for focusing on broader strategic cooperation.
- Requires formalization and further negotiation for mutual satisfaction.
Resilience in Bilateral Ties:
- Modi’s resilience and patience in navigating Trump’s transactional approach.
- Deep structural foundation of the India–US partnership.
- Convergence of strategic interests and extensive cooperation architecture.
Pakistan and Russia Factors:
- Pakistan’s limited impact on the overall US regional strategy.
- No return to strategic parity between India and Pakistan.
- Russia’s declining weight in India’s strategy.
- India’s oil purchases from Russia driven by price and market factors.
China as a Key Variable:
- Structural contradictions between the US and China.
- US objective to prevent Indo-Pacific domination by any single power.
- Alignment with India’s quest for a multipolar Asia.
- Need for greater commercial, technological, and defense depth in the India-US partnership.
Opportunities:
- Defence co-production and critical technologies
- Resilient supply chains (semiconductors, rare earths)
- Climate, digital public infrastructure, and AI governance
Challenges:
- Divergences on trade protectionism and industrial policy
- India’s strategic autonomy vs US alliance expectations
- Domestic political shifts in both countries
With trade frictions receding, India–US relations can move beyond short-term disputes to shape a stable, rules-based order in Asia and contribute to global power rebalancing.
Source: (The Indian Express)
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