US leaders discuss trade opportunities and diplomatic ties in a phone call between President Donald Trump and Indian Prime Minister Narendra Modi, marking a significant development in bilateral relations.
The phone call between US President Donald Trump and Indian Prime Minister Narendra Modi on Monday marked a significant development in the bilateral relationship between the two nations. The discussion centered around “trade and a potential state visit to Washington,” with both leaders emphasizing their commitment to a mutually beneficial partnership.
On February 24, 2017, US President Donald Trump and Indian Prime Minister Narendra Modi held their first phone conversation.
The call marked a significant shift in the bilateral relationship between the two nations.
During the call, they discussed ways to strengthen economic ties, enhance counter-terrorism cooperation, and promote people-to-people exchanges.
Notably, this was one of the earliest high-level engagements for 'one of the earliest high-level engagements' for Trump's administration with an international leader.
The phone call laid the groundwork for future diplomatic efforts.
A History of Warm Ties
The US and India have maintained warm ties over the years, particularly during Trump’s previous term in office. In 2020, Trump visited India, marking a significant moment in US-India relations. The two leaders have also showcased their camaraderie through various events, including the “Howdy Modi” rally in Houston and the “Namaste Trump” event in Gujarat.
Shared Interests and Security Ties
Both democracies share a common goal of containing China in the Indo-Pacific region, which has led to strengthened security ties. India has purchased tens of billions of dollars’ worth of US military hardware from the previous Biden administration. However, trade dynamics between the two nations may be complicated due to Trump’s willingness to use tariffs as a foreign policy tool.
China containment refers to a geopolitical strategy aimed at limiting China's growing influence and power.
The policy involves economic, diplomatic, and military measures to counterbalance 'the rise of China'.
Key aspects of containment include trade restrictions, sanctions, and military presence in the Asia-Pacific region.
The US-led 'Pivot to Asia' policy (2011) marked a significant shift towards containing China's expansion.
Containment is driven by concerns over China's human rights record, territorial disputes, and alleged intellectual property theft.
Trade and Tariffs: A Complex Setting
Foreign policy expert C Raja Mohan noted that Trump’s presidency underscores a complex setting for India, marked by weighty risks in trade and immigration. The US is also India’s largest export market for goods and services, with annual bilateral trade exceeding $190 billion (€181 billion). If Trump were to levy major tariffs on Indian exports, it could spell trouble for India’s domestic businesses.
A New Era of Cooperation
Despite the challenges, both leaders remain committed to a mutually beneficial partnership. Modi has emphasized his willingness to work with the US leader to the benefit of both countries. The discussion between Trump and Modi marks a new era of cooperation between the two nations, with a focus on trade, security, and global peace, prosperity, and security.
