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India-US Trade Deal Boosts New Delhi's Global Negotiating Power, Say Experts

Foreign policy experts view the finalized India-US trade agreement as a significant marker of India's enhanced global negotiating power. They credit India's concurrent trade engagements with the EU, UK, and others for creating strategic pressure on the US. The deal is seen as a confident, balanced move that safeguards domestic economic interests while engaging a major partner. Experts note the agreement also underscores India's policy of making energy purchases based purely on economic considerations.

Key Points: India-US Trade Pact: Experts See Boost to India's Global Clout

  • Deal reflects India's global negotiating strength
  • Strengthens ties with US amid multi-party engagements
  • Driven by India's large market appeal
  • Maintains focus on economic self-reliance
2 min read

Experts call India-US trade agreement a boost to India's global negotiating power

Experts analyze the India-US trade agreement, calling it a sign of India's growing negotiating strength and balanced approach to global trade dynamics.

"India will buy oil from wherever it is available at the best price. - Major General (Retd.) Dhruv C. Katoch"

New Delhi, Feb 3

The recently finalised India-US trade agreement has drawn mixed reactions from foreign policy and strategic affairs experts, with many describing it as a significant development that reflects India's growing global negotiating strength while maintaining its economic self-reliance.

Foreign affairs expert K.P. Fabian said the agreement was expected, noting that direct engagement between Prime Minister Narendra Modi and US President Donald Trump was crucial to breaking the deadlock. He said the development was positive in certain aspects, especially as it came at a time when the rupee was under pressure.

"In geopolitics, if a country does not maintain strong relations with the United States while engaging with other global players, its position can become weaker. Therefore, strengthening ties with the US is important," Fabian said. However, he added that some provisions of the deal may not be entirely favourable, pointing out that the US aims to push for zero tariffs on its exports to India while continuing to emphasise the size and influence of its domestic market.

Major General (Retd.) Dhruv C. Katoch also termed the agreement beneficial for India, highlighting US President Trump's tendency to publicly announce policy decisions first and assess reactions later. He said India's expanding trade partnerships with the European Union and the United Kingdom had strengthened its negotiating leverage.

Katoch also noted that India's energy procurement policy would remain guided by economic considerations. He said India had earlier purchased oil from Venezuela before sanctions were imposed, and with restrictions now easing, India could consider sourcing oil from there if prices are favourable. "India will buy oil from wherever it is available at the best price," he said.

Former diplomat J.K. Tripathi described the tariff reduction as a result of strategic pressure created by India through multiple trade engagements. He said India had strengthened trade ties with organisations such as EFTA and countries including the UK and Germany, creating competitive pressure on the US.

"India represents a market of 1.4 billion people, and there was growing concern that the US could lose economic opportunities if it delayed the agreement," Tripathi said, adding that the deal reflects India's confident and balanced approach to global trade negotiations.

Experts believe the agreement signals India's increasing role in shaping global trade dynamics while safeguarding domestic economic interests.

- IANS

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Reader Comments

P
Priya S
Good analysis by the experts. The point about creating competitive pressure by engaging with EFTA and others is key. It shows we're not desperate and can walk away from a bad deal. "India will buy oil from wherever it is available at the best price" – this pragmatic approach is what we need.
R
Rohit P
While the strategic boost is welcome, we must be cautious. Fabian sir's point about zero tariffs on US exports is worrying. Our market is huge, but we must ensure our domestic industries, especially startups and manufacturing, are not undercut. Self-reliance doesn't mean isolation, but it means strong domestic capability first.
S
Sarah B
Interesting to see India's negotiating strategy evolve. Using partnerships with Europe as leverage against the US is a classic, yet effective, diplomatic move. The 1.4 billion consumer market is our biggest asset. Hope this leads to more Indian products getting easier access to US shelves too.
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Vikram M
Finally, some clear-headed analysis! For too long, trade talks were seen as us giving in. This shows a confident India. The energy policy comment is spot on – why should we pay more when we can get it cheaper elsewhere? Geopolitics and economics must go hand in hand.
K
Karthik V
Good step, but the real test is implementation. We have a history of great agreements on paper that don't translate to ground-level benefits for common people. Will this actually reduce prices of electronics or create more IT jobs? Time will tell. Cautiously optimistic.

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