A win-win for Modi and Trump

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A win-win for Modi and Trump

Tuesday, 18 February 2020 | Simi Mehta

While India will benefit from stronger defence ties and technology, the US President will gain from his pro-India image in an election year

On February 24, US President Donald Trump will inaugurate the world’s largest cricket stadium in Ahmedabad. He will also be welcomed with resounding calls of “Kem Cho, Trump” while participating in a seven-kilometre long roadshow from the airport to the Sabarmati Ashram accompanied by Prime Minister (PM) Narendra Modi. Celebrating the close ties between America and India, this will be the first visit of a US President since 2015 and Trump’s first foreign tour after his impeachment trial. The palpable excitement over the visit is evident, with Modi underscoring that this would “go a long way in further cementing India-US ties.”

 The tour is expected to overtake the obvious optics and engage in serious discussions on broad, strategic ingredients that bring India and the US together. On February 25, the Trumps will be accorded a ceremonial welcome in the second leg of their trip to New Delhi. Defence cooperation is expected to occupy the centrestage and India is set to give a final approval for the $2.6 billion 24 MH-60R Seahawk helicopters equipped with torpedoes and submarine-detection capacities for the Indian Navy. Additionally, there is a US approval already in place for the sale of an Integrated Air Defence Weapon System (IADWS) or the National Advanced Surface-to-Air Missile System-II to India estimated at $1.8 billion. This will strengthen Indian defence capabilities and aid the modernisation process of its armed forces.

This will build upon the Trump Administration’s previous decisions to ease the controls for high and sensitive technology product sales to India. This will grant to India the same access as NATO allies through the Strategic Trade Authorisation-1 status, as well as sale of armed drones and integrated air and missile defence technology. India would demonstrate its will to modernise its armed forces and strengthen military capabilities and bilateral defence cooperation through the agreements with the US that guide the sharing of sensitive military and communications technology and reciprocal use of facilities.

 Trump’s maiden visit to India as the US President will strengthen the respective countries’ Indo-Pacific policies and witness a synergy in their pushback strategies against the China-Russia alignment in Asia. It would be of relevance to see if the Blue Dot network finds mention at the leadership level. This network, launched by the US Government in November 2019 is a global certification for projects as market-driven, financially-sustainable and transparent and is a reaction to the Chinese Belt and Road Initiative. It needs to be highlighted that Australia and Japan — the other two members of Quad (apart from the US and India), have already signed up for the network.

 In an endeavour to push for deeper trade and business ties, the two countries have been trying to reach a modest trade deal with lower tariffs. But the long-awaited “mini” trade deal may not see the anticipated fruition as talks have run into problems due to concerns over data privacy and e-commerce controls. Add to this the recent withdrawal of India from the list of “developing countries” — a status given in line with the WTO’s system of Generalised System of Preferences, on February 10. This would emboss the issues of increased tariff barriers, which could act as an impediment for India getting favourable trade terms. So far, Indian exporters benefitted from the tariff-free access to US markets and receiving the “developed country” tag would subject exports to scrutiny regarding the harm they do the US industry. Despite this, Indian Inc is optimistic about higher investments from US companies, demanding exemption from high duties imposed by the US on certain steel and aluminium products from India and greater market access for its agricultural, automobile, auto components and engineering products.

 Reflecting the strong personal rapport between Trump and Modi, this visit will be the fifth meeting between the two leaders in the last three years to elevate bilateral strategic relations. It would demonstrate the two countries’ affirmation of the shared values of commitment to democracy and rule of law and to a more peaceful and open Indo-Pacific, plus the US’ acknowledgement of India as its major partner in maintaining the international global order.

 Trump’s visit to India is possibly the final major foreign tour before the presidential elections in November 2020. Given the fact that Indian-Americans constitute a huge population and voter base in the US, if Trump reaffirms America’s commitment to diversity, inclusion and immigrants, this visit would steer a significant number of their votes his way as it will showcase his close ties with their home country.  In fact, Modi already blew the US election bugle at the Howdy Modi event in September 2019 in Texas. Swarmed by Indian-American crowd, he endorsed Trump for a second term saying, “Abki baar Trump sarkar.”

(The writer is CEO and Editorial Director, IMPRI)

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