 "US Sutra | Modi-Trump summit: Even better than expected")
Let us face it: Prime Minister Narendra Modi is our best bet. Especially, on the international front, where India is regarded much more than a notable regional state. Perceived as a rising international player, with major power ambitions, India can no longer be ignored. Not only because it is the most populous country in the world, but also because it is a significant economic and military state.
What is more, as a balancing or, as some put it, a swing state, India can play a critical role in the emerging world order. Ably assisted by External Affairs Minister S Jaishankar, Modi has carved out a special niche for himself in the global area. No wonder, India’s foreign policy in his previous two and, now, third term has come to be known as the “Modi doctrine”.
While the United States in President Donald J Trump’s second term has made the slogan “Make America Great Again” (MAGA) world-famous, Modi had already coined and advocated the India first policy which Trump seems to have adopted much more recently as “America first”. No wonder, Modi’s pithy and clever pitch “MIGA + MAGA = MEGA” struck a responsive chord in both countries. Indeed, Make India Great Again (MIGA) plus Make America Great Again (MAGA) equals mega benefits not only for both countries, but for the world. Few can doubt or cavil that, even if they dislike Modi or his centralised style of political leadership and governance.
The joint India-US Statement released during this just concluded visit highlights several significant achievements and initiatives. They cover various domains, including defence, trade, energy security, technology, and multilateral cooperation. The most important of these is defence and strategic cooperation. India needs US technology to modernise, but it also has the purchasing power to shop around and strike the best deals. That is why Modi and Trump reaffirmed their commitment to a dynamic defensive partnership, announcing plans to sign a new ten-year Framework for the US-India Major Defence Partnership. They highlighted the integration of US-origin defence items into India’s inventory and announced plans for new procurements and co-production arrangements. They also pledged to elevate military cooperation across all domains and enhance logistics and intelligence sharing.
The second area was trade and investment. The Modi-Trump meeting set bold new goals for bilateral trade, aiming to more than double total to $500 billion by 2030. They announced plans to negotiate a Bilateral Trade Agreement and welcomed early steps to address and reduce bilateral trade barriers. In addition, they agreed to drive opportunities for greenfield investments in high-value industries in each other’s countries.
Impact Shorts
More ShortsAnother significant area of cooperation is technology and innovation. The two leaders launched the US-India TRUST initiative to promote collaboration in critical and emerging technologies. They agreed to work on a Indo-US Roadmap on Accelerating AI Infrastructure. The launch of INDUS Innovation to advance industry and academic partnerships was another significant step forward in this direction. Given the shift of manufacturing out of China, Modi and Trump emphasised the importance of building alternate trusted and resilient supply chains.
When it comes to energy security, Modi and Trump reaffirmed the US-India Energy Security Partnership, emphasising the importance of enhancing the production of hydrocarbons and strategic petroleum reserves. They announced plans to build US-designed nuclear reactors in India and enhance investments in oil and gas infrastructure.
Overall, the Modi-Trump meeting, among the first of several such meetings during Trump’s second term, not only affirmed India’s strong ties to the US, but took the multilateral cooperation between the two countries to new heights. Both leaders reaffirmed the importance of a close partnership between the US and India for a free, open, peaceful, and prosperous Indo-Pacific region. They resolved to increase cooperation with partners in the Middle East and launched the Indian Ocean Strategic Venture to advance coordinated investments in economic connectivity and commerce. Both committed to strengthen cooperation against terrorist threats and prevent the proliferation of weapons of mass destruction.
While the joint statement highlights several significant achievements, it is essential to critically examine the real impact of these initiatives. The defence partnership, for instance, showcases a strong commitment to enhancing military cooperation and interoperability. However, the success of these initiatives will depend on the timely execution of procurement and co-production arrangements, as well as the effective implementation of the new ten-year framework.
In the realm of trade and investment, the ambitious goal of doubling bilateral trade to $500 billion by 2030 is commendable but achieving this target will require addressing existing trade barriers and ensuring that the Bilateral Trade Agreement is mutually beneficial. With Trump’s trade barriers, it is not clear how such a target will be achieved soon.
Similarly, energy security initiatives, including the commitment to build US-designed nuclear reactors in India, will depend on addressing regulatory challenges and ensuring that the necessary infrastructure is in place. The emphasis on strategic petroleum reserves and enhancing hydrocarbon production is crucial for economic stability, but it will require collaboration with key partners to be effective.
The technology and innovation initiatives, particularly the US-India TRUST initiative, have great potential to drive transformative change. This is where India will have to walk the extra mile to reduce impediments and red tape. Doing business in India is not easy; much more will have to be done to overcome India’s regulatory resistance.
Similarly, when it comes to defence procurements, timely execution and co-production arrangements are the keys to success. Building trust across complicated trans-national bureaucracies and competing government departments will also be necessary going forward, especially if public-private partnerships are to take off. The name of the game is high-quantum investments and mega companies, which can drive not just stock markets but trade volumes.
Trump, with his characteristic bluntness and candour admitted that the Biden administration was not favourbly disposed to Modi and India. Let us hope that Trump 2.0 will be much better for both countries. After all, the largest and most powerful democracies in the world should be natural allies going forward.
The writer is an author and columnist. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.
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