Tuesday, 02 January 2024 12:17 GMT

Trump Wishes India-Russia-China 'A Long, Prosperous Future Together'


(MENAFN- Live Mint) New Delhi: US President Donald Trump on Friday once again took aim at India's global positioning, suggesting that New Delhi was moving closer to Moscow and Beijing at a time when Washington and New Delhi were in the midst of negotiations on a bilateral trade agreement (BTA).

“Looks like we've lost India and Russia to the deepest, darkest, China. May they have a long and prosperous future together!” Trump posted on his Truth Social platform. The remark underscores growing unease in Washington over India's balancing act in global geopolitics.

India is seen leveraging the Shanghai Cooperation Organisation (SCO) to reset its ties with China and strengthen its partnership with Russia, recalibrating its foreign policy amid the tariff wars that are reshaping global dynamics.

Earlier this week, at the two-day SCO gathering of 10 national leaders in Tianjin, China, had sent a message of defiance to the US, which has criticized India over its relations with the two countries.

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During the SCO summit, on Monday, Prime Minister Narendra Modi invited the bloc's leaders to invest in India's startups and initiatives that promote shared cultural heritage. In his first visit to China in seven years, Modi said supporting entrepreneurship and innovation could boost trade and economic cooperation in the region.

India's trade talks with the US were abruptly paused by Washington without citing any specific reason or new timeline for the sixth round of negotiations on the Bilateral Trade Agreement (BTA). The US's negotiating team was scheduled to visit New Delhi on 25 August.

Indian officials, including the commerce minister, have maintained that the talks remain on track, with a deal targeted for November 2025 or the fall of 2025, as outlined in the joint statement issued during Prime Minister Narendra Modi's February visit to Washington. Trump's latest remarks, however, show that political sensitivities that could weigh on the outcome.

India has stuck to buying discounted crude oil from Russia despite Western sanctions and pressure, and it also continues to rely heavily on Chinese inputs for electronics, chemicals and machinery.

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Effective 27 August, the US imposed an additional 25% tariff on India for relentless import of Russian oil, taking the total punitive tariffs to 50% for India, among the highest worldwide. Brazil too has been subjected to a 50% tariff, though in its case, the levy is not linked to a penalty.

Experts believe Trump's rhetoric could harden Washington's stance.“The Trump administration has already adopted a tough line on reciprocal tariffs and non-tariff barriers. If the perception grows that India is leaning toward Russia and China, it may complicate the final stages of the BTA,” said Dr Amit Singh, an associate professor at the Special Centre for National Security Studies, Jawaharlal Nehru University.

For India, the US remains its largest trading partner. In FY25, India exported goods worth $87 billion to the world's largest economy, accounting for 2.3% of the GDP. Five sectors--engineering goods ($19.16 billion), electronics ($14.64 billion), drugs and pharmaceuticals ($10.52 billion), gems and jewellery ($9.94 billion) and textiles ($10.91 billion)--together contributed $65.17 billion.

India's total merchandise exports, excluding petroleum, reached a record $374.1 billion in FY25, up 6% from $352.9 billion in the previous year.

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