Charting new course

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Charting new course

Monday, 17 February 2025 | Pioneer

Charting new course

Prime Minister Modi’s recent US visit was an ice breaker and promising despite Trump’s insistence on raising tariff walls

Since Donald Trump assumed the presidency of the United States, he has made a significant global impact. Through his “Make America Great Again” initiative, he has repositioned the US on the world stage, aiming to reshape the existing global order. By imposing tariff barriers and taking direct action when necessary, his policies have put several economies, including India’s—which heavily depends on exports to the US—at risk. However, some relief appears to be on the horizon. Prime Minister Narendra Modi’s recent visit to the United States has been lauded as a significant milestone in strengthening Indo-US relations. Meeting with President Donald Trump at the White House, both leaders engaged in comprehensive discussions that culminated in agreements spanning trade, defence, energy and technology. Despite previous tensions over tariffs, with President Trump labeling India as a “tariff king,” the summit showcased a collaborative spirit. Both nations committed to more than doubling bilateral trade to $500 billion by 2030. This ambitious goal is set to be achieved through a forthcoming bilateral trade agreement aimed at reducing duties and enhancing market access. Additionally, the US expressed interest in increasing investments in India’s nuclear energy sector, signalling a deepening of economic ties.

A cornerstone of the discussions was defence cooperation. The US offered India the advanced F-35 stealth fighter jets, marking a significant step in military collaboration. This proposal aligns with the ten-year defence cooperation plan, emphasising the US’s intent to bolster India’s defence capabilities. Such initiatives are indicative of a strategic partnership aimed at ensuring regional stability and countering emerging threats. Technological and Innovation Partnerships Prime Minister Modi’s engagement extended beyond political leaders to influential figures in the technology sector. His meeting with SpaceX CEO Elon Musk underscored a mutual interest in space exploration and technological innovation. Discussions encompassed potential collaborations in space technology, mobility solutions and the introduction of services like Starlink satellite internet in India. These dialogues reflect a shared vision of leveraging technology for economic growth and societal benefit. The visit also highlighted India’s nuanced position on global issues. While strengthening ties with the US, India maintains its strategic autonomy, especially concerning relations with Russia and its stance on conflicts like the Ukraine war. This balanced approach allows India to navigate complex international landscapes, ensuring its national interests are prioritised. Prime Minister Modi’s visit to the United States has set a positive trajectory for Indo-US relations. The agreements and discussions held promise a future of enhanced cooperation across various sectors, reflecting a robust partnership poised to address both nations’ strategic and economic objectives.

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