With the bilateral trade agreement between the United States and India on hold, President Donald Trump has shifted from a positive tone to issuing threats of imposing tariffs as high as 500% on Indian products. The threats primarily target India’s purchase of Russian oil. The rhetoric intensified following recent podcasts by US Commerce Secretary Howard Lutnick, who claimed that last year’s deal failed because Prime Minister Narendra Modi did not call Trump directly to finalize the agreement, despite prepared negotiations.

India Dismisses US Claims

India promptly rejected Lutnick’s version of events. Ministry of External Affairs spokesperson Randhir Jaiswal clarified that discussions began on February 13 of the previous year and included multiple negotiation rounds that brought both sides close to an agreement. Jaiswal emphasized that the eight interactions between Modi and Trump in 2025 were focused on broader collaboration rather than a single trade deal.

Economists Downplay Impact of Tariffs

Economist Ashima Goyal, former member of the RBI Monetary Policy Committee, dismissed fears of significant economic fallout. In an interview with Business Today, she noted that India is not as reliant on the US market as countries like Japan or South Korea. Emerging markets, contributing over 50% of global growth, offer India alternative avenues for trade, reducing the potential impact of US tariffs.

Emphasis on Domestic Sensitivities

Goyal stressed the importance of protecting domestic interests, particularly farmers, while negotiating any trade agreement. “We will not do it at the expense of our farmers. They must know our sensitivities,” she said. She added that any deal should be concluded over time in a balanced manner, without hastily compromising key sectors.

India’s Resilient Growth and Market Diversification

Despite the pressure from Washington, India has maintained resilient economic growth and continues to pursue free trade agreements with other partners. The country’s strategy emphasizes market diversification and reducing dependence on a single market while balancing international partnerships with domestic priorities.

The post From Optimism to Threats: Trump’s Tariff Rhetoric Meets India’s Firm Stance on Farmers and Alternatives appeared first on Odisha Connect.

India has once again reiterated its firm opposition to third-party mediation in the Kashmir issue, with Prime Minister Narendra Modi conveying the country’s position in a phone conversation with U.S. President Donald Trump. The 35-minute call, held on the sidelines of the G7 Summit in Canada, followed recent speculation surrounding U.S. involvement in facilitating a ceasefire between India and Pakistan.

The call was initiated by President Trump, days after his administration claimed credit for easing tensions in the aftermath of Operation Sindoor — a counter-terror offensive launched by India following the April 22 terror attack in Pahalgam that killed 26 people, including tourists.

Foreign Secretary Vikram Misri clarified on Wednesday that the ceasefire was the result of direct military-to-military engagement between India and Pakistan, and not brokered by the U.S. “India has never accepted, does not accept, and will not accept any form of third-party mediation in matters related to Pakistan, particularly on Kashmir,” Misri said, quoting Prime Minister Modi.

Modi reportedly briefed Trump on India’s targeted military strategy during Operation Sindoor, stressing that Indian forces only struck terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). The Prime Minister also dismissed speculation that the U.S. had linked a ceasefire deal to trade negotiations, asserting, “There was no trade deal angle.”

President Trump, in response, extended support to India in its ongoing fight against terrorism. He had originally planned a face-to-face meeting with Modi at the G7 Summit, but rising tensions in the Middle East prompted his early departure, converting the planned interaction into a telephonic discussion.

The U.S. President invited Modi for an official visit to Washington, which the Indian Prime Minister declined, citing prior commitments. However, Modi extended an invitation to Trump to attend the upcoming Quad Summit in New Delhi — an invitation Trump accepted.

This high-level exchange underscores India’s long-standing position that the Kashmir conflict is a bilateral issue with Pakistan. While Pakistan has remained open to international mediation, India continues to reject such proposals, viewing them as attempts to internationalise the issue.

Analysts suggest that repeated mediation offers, particularly from the U.S., are likely to be seen by New Delhi as intrusive and counterproductive. India’s firm stance signals a continued preference for direct engagement with Pakistan and a cautious approach to international diplomacy in the region.

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Bhubaneswar: Indian Prime Minister Narendra Modi is among the first foreign leaders to meet Donald Trump in his second term. It’s an important visit for India as high tariffs by the Trump administration looms large and the deportation of large numbers of illegal Indian immigrants has created ripples in India.

PM Modi Meets Trump for Crucial Talks

Prime Minister Modi was among the first few leaders to congratulate and speak with his ‘friend’ Trump after his historic win in the US presidential election. Now the Indian leader is among the first select few foreign leaders visiting Washington DC for bilateral talks.

After a productive visit to France, the PM headed to the US capital Washington on the evening of February 12 (Tuesday) and will hold talks with Potus on February 13 (Wednesday). This is Modi’s first bilateral with Trump during his second term, which began on January 20. And it is probably the most important one.

Since assuming office, Trump has created a stir with his plans to impose tariffs and the crackdown on immigration. India has a lot at stake. Economic cooperation would be a top priority because of Trump’s tariff threats.

Trade: Tackling Tariffs and Economic Ties

The United States is India’s largest trading partner with two-way trade reaching $118 billion in 2023-2024. However, India’s surplus stood at $45.6 billion in 2024, according to US data. It is not something Trump is pleased about. The US president has described India as a “tariff king” and “abuser” of tariffs in the past.

New Delhi is already doing the balancing act. Union Finance Minister Nirmala Sitharaman has slashed import duties on high-end motorcycles and electric batteries in the Union Budget 2025. Modi is likely to emphasise this during his discussions with Trump. It might not be enough.

Modi is also expected to propose increased energy and defence imports during the two-day US visit, reports Reuters.

A revival of talks on a trade deal is likely. A trade pact was in discussion during President Trump’s first term but was not finalised. During the Biden administration, there were no talks on such a deal.

Defence: Strengthening Military Ties

Trump called on India to expand its acquisition of US military technology, including fighter jets, drones and armoured vehicles. Washington is reportedly keen on selling F-35 jets, even as the Asian nation has been buying France’s Rafale to strengthen its military.

New Delhi is also interested in reviving the procurement of six more advanced P-8I long-range maritime patrol and submarine-halting aircraft from the US, which was paused three years ago, reports The Times of India. An increase in defence imports can help in tariff negotiations.

Modi and Trump are also likely to discuss the procurement of other advanced defence equipment like drones and C-130 Hercules military transport aircraft and enhanced joint military exercises.

But amid this, Modi has to keep in mind that any commitment aligns with its Atma Nirbhar defence strategy.

Immigration: Deportations and H-1B Visas

Donald Trump has been cracking down on illegal immigrants and Indians are no exception. The first batch of 104 was deported to India last week and their ill-treatment created a furore back home. While New Delhi has raised concerns over this, it has also said that it is ready to take back its citizens. At least 487 more Indians are likely to be sent back next.

However, the problem at hand is bigger. There are close to 7.25 lakh illegal immigrants in the US, of which 24,000 are in custody, according to Congress MP Manish Tewari.

While India has not resisted taking back the undocumented immigrants, their treatment – handcuffing and shackling them – hurts the country’s image. It has also become a point of debate between the Opposition and the Indian government.

India is likely to bring up the issue of deportation, asking for better treatment of the deportees during the PM’s visit. Modi would also discuss H-1B visas, important for Indian IT workers, to ensure no changes in this programme.

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