Prime Minister Narendra Modi’s visit to the Trump White House in the fourth week of his second presidency has assumed significance for multiple reasons.
The US recently sent back the first batch of 104 Indian illegal immigrants, with hands and legs cuffed, on a military aircraft. As an editorial notes, it was bad optics. Considering that approximately another 800 people will be deported soon, India should be keen to ensure that Indians going to the US for work, study or tourism will not be impacted.
Another issue is Trump’s recent 25% tariff on steel and aluminium imports, with no exemptions. It has raised concerns in India about the impact on domestic steel prices and the risk of increased imports.
The trade imbalance, with India enjoying a $40-50 billion surplus, has further frustrated Trump, who seeks greater market access from India. As both sides seek a more pragmatic trade deal, there’s a growing recognition that India must move away from protectionist policies.
Therefore, negotiating a trade agreement where both parties gain from reduced tariffs and market access would be a more practical action for India. The fact that the world’s third-largest economy cannot have significant barriers to protectionism is becoming increasingly apparent, the editorial highlights. During the Trump administration’s first term, negotiations were underway for a trade agreement, but it was never finalised.
Meanwhile, shared concerns over China’s rising aggression have strengthened the strategic partnership, with both countries focusing on deepening cooperation in defence and emerging technologies such as AI and quantum computing.
The China issue will be a key topic of conversation for Modi and Trump as he wants India to purchase more American technology, including drones.
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