The Economist has delivered a robust critique of President Donald Trump's approach toward India. In its August 29 issue, under the headline 'India’s Next Move', the magazine outlines how his policies have caused turmoil by siding with Pakistan and slapping higher tariffs on India compared to China, thus shaking the foundations of "25 years of diplomacy." According to The Economist, Trump's isolation of India is a significant misstep.
The report highlights India's current status as "humiliated, innocent, and a decisive examiner," grappling with the consequences of Trump's affinity for Pakistan following their clash in May. Now, India confronts tariffs surpassing those imposed on China, currently at 50%, escalating the tension between the two nations.
The Trump administration has also criticized India's oil purchases from Russia, alleging that these are fueling Moscow's conflicts. US officials accuse India of refining Russian crude oil for profit.
Trade Deal Stalemate
Negotiations over the bilateral trade deal between India and the US are stalling. India's refusal to give unrestricted access to its agriculture and dairy markets has reportedly angered Trump, deteriorating diplomatic relations further.
Meanwhile, US-Pakistan relations have improved, evidenced by two visits to Washington by Pakistani Army Chief Asim Munir in two months, resulting in private lunch meetings with Trump and subsequent partnerships with Islamabad in cryptocurrency and oil reserve development.
The Economist's Warning
The Economist cautions that isolating India is a "grave mistake" for the US. Yet, this could be India's opportunity to showcase its "superpower-in-waiting" aspirations. Prime Minister Narendra Modi is encouraged to limit damage to Indo-US relations.
India's Response and Future Strategy
The report conveys that India has resisted bowing to US pressure, instead amplifying its involvement in multilateral forums like BRICS and SCO. The Economist suggests Trump underestimated how the world's fifth-largest economy would react.
Prime Minister Narendra Modi's planned attendance at the SCO Leaders Summit in Tianjin, China, represents a strategic attempt to reset ties with China. The meeting with Xi Jinping could be pivotal for boosting manufacturing by enhancing trade links with both the US and China, alongside seeking new trade agreements.
This visit is viewed as a step towards realigning India-China relations.
