The Modi-Trump Gamble

Political Repercussions

The meeting between Prime Minister Narendra Modi and US President Donald Trump, during Trump’s presidency was held to deepen the bilateral relationship between the two countries. While the conferences often focused on areas like trade, security and military power, certain political and economic repercussions arose from the building of their alliance.

One of the most prominent political consequences of the Modi-Trump meetings was the impact on regional relations, especially with China. India’s closer alliance with the U.S. Has created tensions in Beijing, strengthening of the India-US relationship is a threat to China’s regional influence. This leads to intensified geopolitical tensions, particularly in the Indo-Pacific region where both countries have alliance interests. 

The India-US alliance could and is leading to global criticism as the partnership is with a controversial U.S. leader like Trump, who doesn’t believe in certain human rights, and claims climate change is “nonexistent.” India’s relationship with Trump could be viewed as a signal that India is ignoring global concerns, impacting its international image.

Economic Repercussions

While the Modi-Trump meeting aimed to boost trade relations, there were certain economic setbacks during this period. Trump called out trade imbalances and demanded that India reduce its tariffs and trade barriers otherwise they will be hit by his reciprocal tariffs. The reciprocal tariffs aim to ensure that countries impose similar levies on each other’s goods, aiming for fair trade relations. 

Modi’s desire to meet Trump’s economic policies also led to some domestic challenges. For example, India faced criticism for reducing environmental regulations and labour rights to meet trade and economic demands from the U.S. This could have long-term economic consequences on India’s global reputation on issues like climate change, and labour rights.

India’s shift towards a more bilateral US approach to trade and politics isolates India from other global alliances and alienates partnerships that may be vital for long-term economic growth. India’s participation in global trade conferences, on climate change or other global issues could be compromised due to the need to align with Trump’s administration.

To conclude, while Modi’s engagement with Trump brings trade, military and other strategic advantages, there are significant political and economic downsides. Tensions with neighbouring countries, challenges in trade relations and other international repercussions have been observed and could pose risks to India’s global standing and long-term economic growth.