Monitoring Desk: Indian Prime Minister Modi has traded off India’s economic interests with an Indo-US strategic partnership, believes foreign affairs experts.
Government-aligned Indian media portray Trump-Modi engagements as a ‘historic high of Indo-US relations’, while independent observers, foreign affairs experts, and practitioners believe that Modi has not only compromised the narrative of “made in India” based on its doctrine of self-reliance but also the economic future of India by signing long-term deals for buying high-priced US goods and military hardware.
In an article titled “Modi-Trump deal exposes India’s strategic dilemma,” published in Express Tribune, the writer established a point that the 13th February Modi-Trump meeting confirmed that US President Trump is much better than Indians in business deals. India has accepted a comprehensive strategic partnership, claiming a victory out of it, but actually, it was Trump who gained a long-term export deal with India.
The writer of the article Shazia Anwer Cheema claims ‘reciprocal tariffs’ that India has accepted means to surrender preferential treatment that India got as a developing country under the WTO. Not only that it has also accepted the target of $500 billion in trade by 2030 with America which is around $190 billion.
“By doing simple math, in the next five years, India will be flooded with American products which will organically lead to high inflation and devaluation of the Indian rupee. India has also agreed to only trade in USD setting aside its arrangements with BRICS countries. India has also agreed to buy high-priced US oil although it buys 40% of its crude oil from Russia and the remaining 60% from Iraq, Saudi Arabia, and the UAE. India also promised to buy nuclear fuel from the US under Indo-US Civil Nuclear Agreement 123, which was signed between America and India. India is buying small modular nuclear reactors from France and Russia. Higher energy prices from a much expensive US energy will not only affect the livelihood of everyday Indians but it has a bigger implication of regional diplomatic and trade isolation. The third important point is the defense partnership. Now India has to buy F-35, Javelin, Striker combat vehicles, 404 and 414 engines and again it will down if not end defense trade with France and Russia” commented the writer.
The writer is of the view that US President Trump has won the show by putting India down in its defense and diplomatic relations with Europe, the Middle East, and Russia.
