Modi Arrives In US For Diplomatic Negotiations, Says ‘Trump Is My Friend’ – OpEd
In the potentially devastating trade war in which the United States and European Union have currently locked horns, Indian Prime Minister Narendra Modi’s arrival in Washington DC tonight has set off wide speculation on how far India is willing to go to appease US President Donald Trump for trade privileges.
Two days ahead of Modi’s trip to DC to discuss this vexed issue of a new tariff regime that the US is threatening to slap, Indian bureaucrats burnt the midnight oil and worked out a lower tariff structure and a series of concessions in order to facilitate higher American exports.
That India wishes to get along with White House and the new President as he slaps tariffs on rivals and allies both is well corroborated by the fact that Modi is among the first four leaders to visit Washington since Trump took office.
“…I will proceed on a two day visit to the United States at the invitation of President Donald Trump. I look forward to meeting my friend, President Trump. Although this will be our first meeting following his historic electoral victory and inauguration in January, I have a very warm recollection of working together in his first term in building a Comprehensive Global Strategic Partnership between India and the US. This visit will be an opportunity to build upon the successes of our collaboration in his first term and develop an agenda to further elevate and deepen our partnership, including in the areas of technology, trade, defence, energy, and supply chain resilience. We will work together for the mutual benefit of the people of our two countries and shape a better future for the world,” Modi said in his departure statement.
Official sources said that the quick concessions being doled out to America even in the absence of any specific new threat from Trump so far, coupled with the warm ties between the two leaders during Trump’s earlier tenure, have set off indications that talks between the two leaders may turn out to be positive. Modi is slated to hold a bilateral meeting with the POTUS in both restricted and delegation-level formats on Thursday. He is also expected to hold a one-to-one meeting with the all-powerful billionaire businessman Elon Musk amidst speculation that Starlink’s entry in the South Asian market to launch satellite broadband services will surely come up for discussion.
Not to forget that the Modi-Trump bilateral meet comes close on the heels of the US sending back a first batch of 104 Indian illegal immigrants in shackles on a military aircraft, triggering a political row in India. India’s calm acceptance of undocumented citizens is being seen as a positive gesture from the Indian side.
External Affairs Ministry officials in New Delhi said India is eager to preserve ties in trade, energy, defence and technology sharing between the two nations as well as ensure India’s status as a “destination for foreign manufacturers leaving China”.
India’s very vocal External Affairs Minister S. Jaishankar, considered a close confidante of Modi, had set the cat among the pigeons with a recent statement that Delhi had no reasons to worry that Indo-US relations would not prosper under Trump. He is on record stating that Modi’s congratulatory call was among the first three calls that President [elect] Trump had taken.
Jaishankar’s statement aroused a lot of interest as Trump had called Modi a “great leader” but simultaneously also accused India of charging excessive tariffs. This had happened sometime around last October. Of course, those who cite this also state that the two leaders have often expressed admiration for each other in the past.
Analysts recall that in 2019, Modi and Trump had publicly heaped praise upon each other during a joint appearance at an Indian-American community event called “Howdy, Modi!” The event was billed as one of the largest receptions for a foreign leader in the US. In 2020, Trump visited India and was hosted by Modi at his home state in Gujarat where he organised a glittering event and rally at the world’s biggest cricket stadium.
Foreign press has recently reported that India may be in for a surprise because despite these mega events in the US and India and a show of warmth and bonhomie between the two leaders during Trump’s first tenure, Trump had moved ahead and ended the preferential trade status that India enjoyed, which led to deepened tensions between the two countries.
On the contrary, Indian analysts argue that India can no longer be taken lightly by the US because there is an evident shift in balance of power in the world in recent years.
As part of Modi’s itinerary, there is also going to be considerable time spent on discussing the oil and gas front as well, where Indian blue chip companies are looking to increase LNG imports from the US. The Indian government wants the share of natural gas in India’s primary energy mix to grow to 15 per cent by 2030, from a level of 6 per cent at present. On the eve of Modi’s US visit, Petroleum Secretary Pankaj Jain disclosed that Modi will discuss long-term LNG contracts which could further solidify Washington’s position as the world’s largest LNG exporter.
The stakes for India, in this reciprocal tariff war, are quite substantial. India has catapulted to a position of eminence, having become one of the world’s fastest-growing economies and an important player in the global trade and commerce arena.
And, India’s exports to the US are a vital component of its economic success. Therefore, if the US does increase the tariffs on Indian goods, it is bound to have an impact on the local prices, an increase in inflation and dampening of trade volumes.
Not only could it have political repercussions for the present ruling party, it would impact almost all sectors ranging from technology to agriculture and will have a ripple effect on the entire economy. Diplomatic negotiations and not retaliatory actions is the answer for India.
