#Modi Trump relationship

[insightfultake]

The Curious Case of Trump Not Inviting PM Modi: A Diplomatic Snub or Strategic Move?

Former U.S. President Donald Trump has long been a figure who captivates global attention with his unpredictable decisions. From his polarizing political stances to his unconventional diplomatic moves, Trump’s actions rarely fail to spark widespread discussion. The latest episode to make headlines revolves around Trump’s decision to extend invitations to Chinese President Xi Jinping and Indian industrialist Mukesh Ambani, while notably excluding Indian Prime Minister Narendra Modi from his upcoming inauguration ceremony. The event in question is Trump’s inauguration on January 20, 2025, when he will be sworn in as the 47th President of the United States. This surprising omission has sent ripples through political circles, sparking debates about the implications for Modi’s global stature and the political narrative in India.

For a leader like Modi, who has worked diligently to build a global persona as a strong, respected figure, this exclusion is not a trivial matter. Modi has worked hard to forge ties with Trump, most notably through the 2019 "Howdy Modi" event in Houston, which saw over 50,000 Indian-Americans gather in support of both leaders. Modi’s endorsement of Trump during the event—“Abki Baar, Trump Sarkar” (This time, a Trump government)—was a rare and powerful gesture of support from a global leader. Therefore, Trump’s exclusion of Modi from such an important occasion raises critical questions: Is this a diplomatic snub, or is there a deeper, more strategic reasoning behind this move? Read more

[mariacallous]

China hawks in the United States have made what amounted to a Faustian pact with President Donald Trump. Anxious that Beijing’s power was surpassing Washington’s and critical of Democrats such as former President Joe Biden for failing to turn it back, Trump seemed to be the best option for a more robust approach to China. But after the whirlwind start of the new administration, that bargain already looks shaky, raising questions about whether Trump’s much-anticipated pivot to a tougher China policy will instead turn out to be a geopolitical win for Beijing.

Trump’s approach presents a conundrum. On the one hand, he has appointed serious China hawks to important positions, including at the National Security Council, the State Department, and the Defense Department. This team has been crafting the elements of a more competitive approach—albeit with some degree of continuity with Biden’s team.

On the other hand, it should by now be obvious not just that Trump’s strategic agenda is more radical and far-reaching than in his first term, but also that his ferocious transactional instincts risk pulling his approach to China in directions that would be entirely welcomed by Chinese President Xi Jinping.

Indeed, as it’s viewed from Beijing, Trump’s second start in the White House already presents myriad unexpected opportunities for China to exploit.

Those who support a more competitive approach can still point to early wins. Trump has lambasted European allies but been much gentler in Asia. Japanese Prime Minister Shigeru Ishiba enjoyed a successful trip to Washington in early February, and a visit by Indian Prime Minister Narendra Modi last week demonstrated an Indo-U.S. relationship in seemingly rude health. Trump’s team reaffirmed its support for the Australia-United Kingdom-United States pact (known as AUKUS) while U.S. warplanes conducted joint patrols above the South China Sea to support the Philippines. And by browbeating Panama, the United States persuaded it to abandon China’s Belt and Road Initiative.

More starkly, Trump’s approach to Ukraine—his demand that European nations provide security guarantees for any peace deal as well as Defense Secretary Pete Hegseth’s declaration that Washington is no longer “primarily focused” on Europe’s security—bears the hallmarks of an administration that is serious about prioritizing the Indo-Pacific over other parts of the world. “America, as the leader of the free world defending American interests, is going to need to make sure we’re focused properly on the Communist Chinese,” Hegseth said on Feb. 12 during a trip to Germany.

Yet this apparent drive to prioritize competition with China stands in sharp contrast to Trump’s wider geopolitical approach—much of which will likely be a cause for quiet contentment in Beijing. Some of this links to Trump’s rough-and-tumble treatment of allies as well as China’s long-term hope that the United States’ globe-spanning alliance system might crumble. Just as important is Trump’s new embrace of a raw form of great-power politics.

His inaugural address featured little criticism of China, barring two references citing Beijing as the justification for Trump���s plan to retake the Panama Canal. Its other themes, including his neo-imperial aspirations for Greenland, will be welcomed by China—given that they align with its ambitions to control Taiwan and signal the demise of U.S. support for a rules-based order that China has long sought to end.

Much the same is true of the way that Trump is pursuing a great-power deal in Ukraine by reportedly handing concessions to Russian President Vladimir Putin while sidelining Europe. All of this plays to Beijing’s geopolitical advantage, given its quasi-alliance with Moscow as well as its long-term aims of driving a split between Europe and the United States and undermining NATO so that it cannot get involved in Asia.

Elsewhere, Trump’s policies are creating openings for possible Chinese influence. His controversial plan to take control of Gaza has sown discord—not just between the United States and the wider Middle East, but also among Muslim-majority nations in Asia, notably including Indonesia and Malaysia. His effort to shutter the United States Agency for International Development, while not a critical injury to Washington’s ability to manage great-power competition, reinforces Beijing’s narrative about U.S. unreliability.

More institutional disruption is likely to follow in ways that will further benefit Beijing, from the hollowing out U.S. intelligence agencies to potential purges of military leaders.

China might not be able to capitalize on these opportunities, of course. But it will certainly attempt to do so. As Jin Yinan, a professor of military strategy at China’s National Defense University, once noted in a 2018 interview with the New Yorker, China will often claim in public that Trump’s policies do it harm, while actually quietly recognizing they provide opportunities. “As the U.S. retreats globally, China shows up,” he told the magazine.

None of this should be surprising. The weaknesses of Trump’s transactional approach to China were clear in his first term. At the time, he did push a new, hard-line approach to great-power competition with China and Russia. But he also struck erratic arrangements, from tariff deals to a plan to save ZTE, a Chinese telecommunications company. Xi’s part of his bargain with Trump—a commitment to a sharp increase in purchases of  U.S. products—was never fulfilled or enforced. Trump’s deal-making instincts remain clear, from his invitation to Xi to attend his inauguration to his U-turn to preserve Chinese control of TikTok.

Beijing’s main hope will be to lure Trump into a big deal involving the status of Taiwan. Trump has shown little interest in supporting the island. He is known to be pessimistic about the United States’ ability to deter China’s long-term goal of unification. Trump’s policymaking style is notoriously unpredictable, and he has few fixed ideological convictions, but he remains a transactional leader. High-profile visits to Beijing, future summits with Xi, and the idea of striking a major deal will appeal to him. A new economic bargain must be conceivable—perhaps one in which China promises to invest in the United States in exchange for reductions in technology export controls.

For now, a grander bargain over Taiwan’s future may be a step too far, although some kind of fourth joint U.S.-China communiqué clarifying Washington’s position cannot be ruled out, adding to the existing three communiqués signed between 1972 and 1982 that act as a bedrock set of understandings for U.S.-China relations.

Either way, the very unpredictability of Trump’s approach—capable of shifting rapidly from aggressive tariff threats to warm personal diplomacy—makes it exceedingly hard for the hawks he appointed, or indeed U.S. allies, to judge what he might ultimately do.

Although they have welcomed Trump on the surface, those allies are clearly deeply nervous. During their meeting, Ishiba managed to get Trump to affirm the importance of stability across the Taiwan Strait—but it is hard to see how Japan or anyone else can rely on any statement not being reversed on a sudden presidential whim. Meanwhile, former Singaporean Prime Minister Lee Hsien Loong gave a striking speech on Feb. 8 in which he warned that “the U.S. is no longer prepared to underwrite the global order,” leaving countries like his own scrambling to cope and adapt.

Naturally, China’s leadership is not going to express in public that it senses a geopolitical opportunity. More likely, it will continue to suggest that the two superpowers “respect each other’s core interests and major concerns,” as Xi put it in a call with Trump in January. But just as Washington’s allies are worried in private about Trump’s willingness to upend core tenets of the existing international order, so too is Beijing is calculating that his second presidency will accelerate the very changes that China has long sought to achieve.

[dertaglichedan]

U.S. President Donald Trump expressed optimism about the ongoing India-U.S. tariff talks, praising Indian Prime Minister Narendra Modi as a 'smart man' and a 'great friend'. Trump's comments come amid discussions on tariffs, with the U.S. set to impose 25% tariffs on imported vehicles and reciprocal tariffs on countries, including India, starting April 2.

Trump highlighted India's status as one of the highest tariffing nations in the world, yet expressed confidence that the talks would lead to positive outcomes. He emphasized the strong relationship between the two nations, noting that Modi's visit to Washington D.C. in February had been productive

[bllsbailey]

VP Vance: India, U.S. Partnership Key To 21st Century

U.S. Vice President JD Vance and his sons, Vivek, (left) and Ewan watch a cultural performance at Amber Fort a historical site on April 22, 2025 in Jaipur, India.

Vice President JD Vance has mapped out a bolder future for U.S. – India relations.

In his first official visit to India, Vance set the stage for a potential new trade deal between two global powers.

While speaking at a forum in Jaipur, India on Tuesday, Vance called the relationship between the two countries one of friendship and shared purpose.

He told business and government leaders that both nations must lead together to build a new global system based on shared interests and mutual respect.

The vice president also announced that the U.S. and India have finalized terms for new trades negotiations, part of a goal to a double bilateral trade to $500 billion by the end of the decade.

“I believe this is a vital step toward realizing President Trump’s and Prime Minister Modi’s vision, because it sets a road map toward a final deal between our nations,” Vance stated. “I believe there is much that America and India can accomplish together. And on that note I want to talk about a few areas of collaboration today, how India and the United States can work together.”

Vance then touched on President Donald Trump’s trade strategy saying it isn’t about conflict but bringing about positive change across the globe.

He said the Trump administration is focused on building trade relationships rooted in fairness not exploitation.

“Our administration seeks trade partners on the basis of fairness and of shared national interests” he continued. “We want to build relationships with our foreign partners who respect their workers, who don’t suppress their wages to boost exports, but respect the value of their labor. We want partners that are committed to working with America to build things, not just allowing themselves to become a conduit for transshipping others goods.”

Vance also praised India’s optimism, vibrant, and vision for the future, contrasting it with what he called “self-doubt” among western leaders.

He described Prime Minister Modi as a thoughtful, future focused leader who shares President Trump’s ambition and loyalty.

Vance said both the U.S. and India have different systems and tradition, but share a commitment to growth, innovation and national pride.

He ended by calling the U.S. – India alliance one of the most consequential partnerships of the 21st century.

“I believe that if India and the United States work together successfully, we are going to see a 21st century that is prosperous and peaceful. But I also believe that if we fail to work together successfully, the 21st century could be a very dark time for all of humanity.”

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[news365timesindia]

[ad_1] New Delhi: US Vice President JD Vance and National Security Adviser Michael Waltz are expected to arrive in New Delhi on April 21, in a significant diplomatic engagement that underscores Washington’s strategic focus on its partnership with India amid mounting global unease over President Donald Trump’s sweeping tariff policy. Top sources were quoted by news agency PTI on Friday that the two US leaders will be undertaking separate visits, with differing objectives. While Vance’s trip is expected to have a largely private character—accompanied by Second Lady Usha Vance and their children—it will include key official components. Waltz’s visit, by contrast, will be entirely business-focused. The visits are timed ahead of Prime Minister Narendra Modi’s scheduled two-day trip to Saudi Arabia starting April 22. Both Vance and Waltz are expected to meet Modi during their stay in the capital. Waltz is also slated to hold wide-ranging discussions with NSA Ajit Doval and External Affairs Minister S. Jaishankar on Indo-Pacific security, critical and emerging technologies, and economic cooperation. Waltz, a vocal advocate of strong U.S.-India ties, will visit India from April 21 to 23, sources said. He is expected to formally launch the India-US TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative—a new platform for high-technology cooperation that replaces the iCET (Initiative on Critical and Emerging Technology) established during the Biden administration. The TRUST initiative was jointly announced last month following talks between President Trump and Prime Minister Modi in Washington. It aims to deepen collaboration in areas such as semiconductors, critical minerals, export controls, telecommunications, and defense-space technology. Vance, whose visit is expected to be longer, is planning stops in Shimla, Hyderabad, Jaipur, and Delhi, alongside his family. The trip reflects both personal and official undertones as Washington seeks to emphasize enduring people-to-people and diplomatic ties. The back-to-back visits come on the heels of U.S. Director of National Intelligence Tulsi Gabbard’s recent trip to India, during which she met with Modi, Defence Minister Rajnath Singh, Jaishankar, and Doval. The diplomatic flurry follows global fallout over Trump’s controversial tariff regime. On Wednesday, the president announced a temporary 90-day suspension of tariffs on all countries except China, seeking to ease international market jitters that have fueled recession fears. India and the U.S. have sought to steady their trade ties despite growing friction. In February, Modi and Trump agreed to begin negotiations on the first tranche of a bilateral trade agreement (BTA), with an aim to conclude talks by fall 2025. As Washington and New Delhi navigate this turbulent global economic landscape, the visits of Vance and Waltz signal a recalibration of U.S. foreign policy priorities and a reaffirmation of India’s role as a key strategic partner in the Indo-Pacific. Click here for Latest Fact Checked News On NewsMobile WhatsApp Channel [ad_2] Source link

[news365times]

[ad_1] New Delhi: US Vice President JD Vance and National Security Adviser Michael Waltz are expected to arrive in New Delhi on April 21, in a significant diplomatic engagement that underscores Washington’s strategic focus on its partnership with India amid mounting global unease over President Donald Trump’s sweeping tariff policy. Top sources were quoted by news agency PTI on Friday that the two US leaders will be undertaking separate visits, with differing objectives. While Vance’s trip is expected to have a largely private character—accompanied by Second Lady Usha Vance and their children—it will include key official components. Waltz’s visit, by contrast, will be entirely business-focused. The visits are timed ahead of Prime Minister Narendra Modi’s scheduled two-day trip to Saudi Arabia starting April 22. Both Vance and Waltz are expected to meet Modi during their stay in the capital. Waltz is also slated to hold wide-ranging discussions with NSA Ajit Doval and External Affairs Minister S. Jaishankar on Indo-Pacific security, critical and emerging technologies, and economic cooperation. Waltz, a vocal advocate of strong U.S.-India ties, will visit India from April 21 to 23, sources said. He is expected to formally launch the India-US TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative—a new platform for high-technology cooperation that replaces the iCET (Initiative on Critical and Emerging Technology) established during the Biden administration. The TRUST initiative was jointly announced last month following talks between President Trump and Prime Minister Modi in Washington. It aims to deepen collaboration in areas such as semiconductors, critical minerals, export controls, telecommunications, and defense-space technology. Vance, whose visit is expected to be longer, is planning stops in Shimla, Hyderabad, Jaipur, and Delhi, alongside his family. The trip reflects both personal and official undertones as Washington seeks to emphasize enduring people-to-people and diplomatic ties. The back-to-back visits come on the heels of U.S. Director of National Intelligence Tulsi Gabbard’s recent trip to India, during which she met with Modi, Defence Minister Rajnath Singh, Jaishankar, and Doval. The diplomatic flurry follows global fallout over Trump’s controversial tariff regime. On Wednesday, the president announced a temporary 90-day suspension of tariffs on all countries except China, seeking to ease international market jitters that have fueled recession fears. India and the U.S. have sought to steady their trade ties despite growing friction. In February, Modi and Trump agreed to begin negotiations on the first tranche of a bilateral trade agreement (BTA), with an aim to conclude talks by fall 2025. As Washington and New Delhi navigate this turbulent global economic landscape, the visits of Vance and Waltz signal a recalibration of U.S. foreign policy priorities and a reaffirmation of India’s role as a key strategic partner in the Indo-Pacific. Click here for Latest Fact Checked News On NewsMobile WhatsApp Channel [ad_2] Source link

[werindialive]

India Reacts to Trump’s Tariff Decision: ‘Not a Setback’

After U.S. President Donald Trump imposed a 26% tax on Indian goods entering the U.S., an Indian government official said the impact is not a major problem but a “mixed bag.”

Speaking to news agency PTI, the official explained that a 10% tax will apply to all imports starting April 5, with an additional 16% coming into effect on April 10. The official, who did not want to be named, said, “It is a mixed bag and not a setback for India.” The Indian government is currently studying how this decision will affect trade.

Why Did Trump Impose the Tariff?

Trump made the announcement at the White House, holding a chart that claimed India charges a 52% tax on U.S. goods. To counter this, he said the U.S. will now charge India 26%, though official documents suggest this could go up to 27%.

Despite this move, the White House said that taxes on imports from India will not increase further if India does not react by imposing its own tariffs and agrees to address U.S. trade concerns. The Indian government is in discussions with U.S. officials to find a solution that works for both countries.

Trump’s Comments on India

Although Trump called Indian Prime Minister Narendra Modi “a great friend,” he also said India was “not treating us right.” He argued that India’s average tax on imported goods is much higher than the U.S. rate of 3.3%, making the trade relationship unfair.

To improve trade ties, the Indian government is working on a trade agreement with the U.S. Both countries hope to finalize the first part of the deal by September or October this year.

What Happens Next?

As the U.S. takes a tough stance on trade, India will have to carefully navigate its response. Government officials are taking a cautious approach, while Indian exporters are closely watching the situation. The next few months will be important in shaping future trade relations between the two nations. To read international news in Hindi, subscribe to our newsletter!

[todaynewsheadings]

Trump Pressures ‘Friend’ Modi With 26% Tariff on India - Impact & Analysis

The trade relationship between the United States and India has witnessed several ups and downs. In a significant move, former U.S. President Donald Trump imposed a 26% tariff on Indian goods, putting pressure on Indian Prime Minister Narendra Modi. While both leaders shared a friendly rapport, the tariff hike raised concerns over bilateral trade and economic policies. Understanding the 26%…

[odnewsin]

Trump says he expects India to reduce tariffs on US goods

New York: President  has said that he believes India will lower its tariffs on American goods, even as he reiterated his threat to impose reciprocal US tariffs on the country starting April 2. In an interview with Breitbart News, an American news, opinion, and commentary website, Trump discussed the US’ relationship with India. Asked about his summit with Prime Minister Narendra Modi last month,…

[balkikhalnews]

US President Donald Trump shares PM Modi's podcast with Lex Fridman

PM Modi praises Trump during his podcast US President Donald Trump shared a podcast of Prime Minister Narendra Modi’s conversation with Lex Fridman on Sunday. In the podcast, PM Modi praised Trump’s leadership, recalled memorable moments from their meetings, and highlighted their continued relationship as Trump assumed presidency for the second time.In a post on Truth Social, Trump posted the…

[youthchronical]

US President Donald Trump shares PM Modi's podcast with Lex Fridman - The Times of India

PM Modi praises Trump during his podcast US President Donald Trump shared a podcast of Prime Minister Narendra Modi’s conversation with Lex Fridman on Sunday. In the podcast, PM Modi praised Trump’s leadership, recalled memorable moments from their meetings, and highlighted their continued relationship as Trump assumed presidency for the second time.In a post on Truth Social, Trump posted the…

[newzision]

Trump's rates can drive North -Americans to countries like China, India

United States President Donald Trump listens when Indian Prime Minister Narendra Modi Parla during a joint press conference in the eastern white house room on February 13, 2025 in Washington, DC. Alex Wong | Getty Images News | Pictures of getty United States President’s Rates, Donald Trump, could push the Allies to forge closer relationships with other countries such as China and India,…

[mariacallous]

In April 2024, Elon Musk was scheduled to meet Prime Minister Narendra Modi in India and announce a multibillion-dollar Tesla factory investment. Instead, he canceled at the last minute and flew to China. Musk’s switch earned him a barrage of aggrieved Indian headlines. But even before his emergence as a force in Donald Trump’s second administration, the incident also served to underline Musk’s unusual role as a prized ambassador to the emerging industrial giants of Asia.

Musk embodies much of what India wants from its ties with the United States: the prospect of major investment, valuable technology transfer, and now a direct back channel to the White House. But viewed in a different way, India, with its system of close connections between billionaire industrialists and political power brokers, offers a means to understand an emerging U.S. economic model, in which tycoons such as Musk act as handmaidens of industrial policy but also conduits of political power.

In recent decades, ties between India’s political leaders and industrial giants have grown ever stronger. Billionaires such as Mukesh Ambani and Gautam Adani sit atop vast corporate empires, with tentacles into almost every area of national life. Conglomerate ownership has been lucrative, especially for the country’s most famous business duo: Ambani and Adani rank as two of Asia’s richest men on Forbes’s real-time list of billionaires, with fortunes of $92 billion and $57 billion, respectively, as of mid-March.

In this environment, accusations of crony capitalism against the Indian government, meaning collusion between political leaders and business, remain common. Main opposition leader Rahul Gandhi, for instance, made this topic a central theme of his campaign in last year’s general election, which Modi went on to win comfortably.

But the relationship between India’s government and its industrialists has changed since Modi’s election as prime minister in 2014. In my book The Billionaire Raj, I tell the story of an era of rampant corruption and cronyism in the 2000s and early 2010s. During that time, a weak but scrupulously honest prime minister, Manmohan Singh, presided over what was known as the “season of scams,” in which myriad multi-billion-dollar corruption scandals erupted one after another.

Even then, India’s cronyism was sophisticated and a long way from crude bribes delivered via cash in brown envelopes or bulging suitcases. Nonetheless, it was widely perceived to be out of control: “Every cabinet minister was a sovereign enterprise,” a close observer of Indian business once put it to me, with only a degree of exaggeration, describing how under Singh’s government many political leaders ended up being accused of involvement in scandals in areas from telecommunications regulation to the licensing of minerals such as coal or iron ore.

Under Modi, the relationship between government and the ultra-rich has evolved into something more politically harnessed and directed. Like Singh, Modi enjoys a reputation for personal probity. Though corruption still exists on his watch, the number of major public scandals has fallen dramatically. Today, few Indian ministers would dare to skim off the top, for fear of offending their politically dominant prime minister.

India’s system is beginning to resemble the kind of crony capitalism common in recent decades in East and Southeast Asia—for instance, under Prime Minister Mahathir Mohamad in Malaysia in the 1980s or during President Park Chung-hee’s period of rapid growth and autocratic rule in South Korea in the 1970s. The model is that select plutocrats develop mutually favorable ties to political leaders in return for building the airports, buildings, and telecoms networks their countries need for national development.

The reason politicians work with powerful billionaires is because they can get big things done quickly. And if their political connections then provide tycoons with financial advantages elsewhere in their businesses—as often happened in India’s original season of scams—then that is considered an acceptable trade-off.

The role Musk plays in the Trump administration is unprecedented, straddling high politics, industrial policy, and increasingly international affairs. Certainly no industrialist in India enjoys a position as far-reaching or as globally high-profile. But in a sense, the United States and India are actually converging: Indian crony capitalism has become less chaotic and more organized under Modi, while under Trump the United States is moving the other way. A successful U.S. system of open markets and fair competition is being abandoned for one in which Trump-linked industrialists enjoy favorable quid pro quos. In international affairs and economic policy alike, the United States is turning its back on a rules-based approach.

Of course, the billionaire-politician nexus has long-term pitfalls, whatever benefits such tacit cooperation might at first deliver in terms of improved infrastructure or higher investment. One is the danger of discord. If Trump’s model of economic management involves deals with favored politically connected business leaders, that model breaks down if he subsequently falls out with them. A system that relies on the efficient cooperation of industrial and political elites remains highly vulnerable, since squabbles will inevitably emerge.

While billionaire tycoons appear in the public imagination as if unconstrained heroes in an Ayn Rand novel, across the autocratic world—be it India, China, Russia, or increasingly in Trump’s America—the reality is that business leaders are generally the supplicants. For all their power, Adani and Ambani remain deeply wary of Modi, just as Jack Ma is of Chinese President Xi Jinping or any sane Russian oligarch would be of President Vladimir Putin. Even Musk has been notably deferential to Trump in recent interviews, seemingly aware that his privileged position could be revoked at any moment. Ultimately, in the relationship between autocrat and tycoon, it is the autocrat who holds true power.

At least in India, it is possible to argue that the economy is partly changing for the better. What began as a chaotic and self-serving cronyism has shifted somewhat to become more efficient and less rampantly corrupt. Eventually, perhaps, a more rules-based market system will emerge. Under Trump and Musk, the United States is heading toward kleptocracy rather than away from it. The fear is that a U.S. season of scams is unlikely to be far away.

[editorial-for-govt-exams]

India's Economic Trajectory: Balancing Growth Aspirations with Structural Reforms

Introduction

As India aspires to achieve developed nation status by 2047, it faces a complex economic landscape marked by ambitious growth targets, structural challenges, and evolving global dynamics. While the nation has demonstrated resilience, sustaining momentum requires a multifaceted approach that addresses both immediate concerns and long-term objectives.

Current Economic Performance

India continues to be one of the fastest-growing major economies, with the Reserve Bank of India projecting a GDP growth rate of 6.4% for the current fiscal year. High-frequency indicators such as vehicle sales, air traffic, steel consumption, and GST e-way bills suggest a significant and sustained pickup in economic activity, buoyed by budget-induced consumption. However, this growth rate represents the lowest in four years, underscoring the need for renewed policy focus.

Economic Times

Challenges and Structural Reforms

Despite positive indicators, India faces several challenges, including high unemployment, food inflation, and weak consumer spending. The recent budget aimed to support consumers through tax adjustments but offered limited measures to boost capital investment. To achieve higher growth trajectories, structural reforms are imperative. Key areas include:

Labor and Land Reforms: Simplifying labor laws and land acquisition processes to attract investment.

Trade Policies: Reducing protectionist duties to integrate more effectively into global supply chains.

Skill Development: Enhancing workforce skills to meet the demands of a modern economy.

Implementing these reforms requires political will and consensus, as resistance from various stakeholders can impede progress.

Financial Times

Global Trade Dynamics

India's trade relations, particularly with the United States, are at a critical juncture. Recent discussions between Prime Minister Narendra Modi and U.S. President Donald Trump have highlighted potential reciprocal tariffs, which could impact key Indian sectors such as textiles, processed foods, chemicals, and electronics. While India has offered concessions, including reducing duties on select luxury items, the broader economic implications of potential U.S. tariffs remain a concern.

Reuters

Stock Market and Investment Climate

The Indian stock market has experienced volatility, with small-cap stocks entering bear market territory. The rupee has also faced downward pressure, prompting interventions by the Reserve Bank of India. These developments reflect investor concerns over economic uncertainties and global trade dynamics. To bolster investor confidence, it is essential to address structural challenges and provide a stable policy environment.

Reuters

Conclusion

India stands at a pivotal moment in its economic journey. Balancing growth aspirations with necessary structural reforms and navigating complex global trade relationships are critical to achieving long-term objectives. Proactive policy measures, political consensus, and a commitment to inclusive development will be key drivers in shaping India's economic future.

Summary

India's pursuit of developed nation status by 2047 necessitates addressing current economic challenges through structural reforms, strategic trade negotiations, and fostering a conducive investment climate. While growth projections remain positive, sustaining this trajectory requires comprehensive policy interventions and a focus on long-term economic resilience.

[thehustlejournal]

Asian Economies Scramble to Appease Trump as U.S. President Ratchets Up Tariff Threats

President Donald Trump announced plans to impose reciprocal tariffs, matching those levied on U.S. goods by respective countries, potentially taking effect as soon as Tuesday.

According to Barclays, most Asian economies had higher average import tariffs than the U.S. as of 2023, based on World Trade Organization (WTO) data.

Analysts caution that even if some economies avoid immediate tariffs, the risk remains high for future measures.

As the threat of Trump’s reciprocal tariffs looms, several Asian economies with substantial trade surpluses with the U.S. are rushing to negotiate favorable terms to avoid higher duties.

Trump stated on Friday that he would soon unveil tariffs designed to match the duties other nations impose on U.S. exports. While he did not specify which countries would be affected, he hinted at a broad effort to eliminate U.S. trade deficits.

Although specifics remain uncertain, analysts at Barclays suggested on Monday that most emerging Asian economies will likely see increased U.S. import tariffs, except for Singapore and Hong Kong, with which the U.S. maintains trade surpluses.

According to WTO estimates, India had the highest simple average tariff rate in Asia at 17% for most-favored-nation (MFN) status countries, while the U.S. tariff stood at 3.3%. The U.S. extends MFN status to most major economies except Russia.

Trade Surpluses and Tariff Exposure

Based on U.S. Census Bureau data, the countries with the highest trade surpluses with the U.S. last year were:

China: $295.4 billion

Vietnam: $123.5 billion

Taiwan: $74 billion

Japan: $68.5 billion

South Korea: $66 billion

Stefan Angrick, senior economist at Moody’s Analytics, warned that even if some nations dodge immediate tariffs, Washington’s stance could shift, making them vulnerable to future duties.

Vietnam Faces Economic Fallout

Vietnam is one of the most vulnerable economies due to its significant trade surplus and Chinese investments. The country’s surplus with the U.S. grew by nearly 18% last year to a record high, while its MFN average tariff stood at 9.4%.

Tariffs on specific imports to Vietnam include:

Beverages and tobacco: 45.5%

Sugars, confectionery, fruits, and vegetables: 14%-34%

Clothing and transport equipment: 14%-34%

Trump previously referred to Vietnam as "almost the single worst abuser" of trade practices in 2019. While he has not made recent remarks on the country since his re-election, Vietnamese officials have sought to appease Washington by increasing purchases of U.S. aircraft, liquified natural gas (LNG), and other goods.

Vietnamese Prime Minister Pham Minh Chinh has directed Cabinet members to prepare for a global trade war scenario.

India Prepares Concessions

India may face steep reciprocal tariffs due to its significantly higher import duties compared to the U.S. Estimates suggest that U.S. tariffs on India could rise from 3% to over 15%.

To mitigate risks, New Delhi recently lowered tariffs on:

Motorcycles

Electronics

Critical minerals

Lithium-ion batteries

Indian Prime Minister Narendra Modi is expected to discuss further tariff reductions and increased energy and defense purchases from the U.S. during his upcoming meeting with Trump.

During Trump’s first term, relations with Modi were relatively warm, but the former president has since criticized India’s trade policies, labeling it a "very big abuser" of tariffs.

Some experts speculate that Trump may revisit discussions on a U.S.-India free trade agreement, an initiative reportedly dismissed by the Biden administration.

Japan Maintains Favorable Trade Status

Japan appears to have secured a favorable relationship with Trump, avoiding immediate tariff threats. Japanese Prime Minister Shigeru Ishiba recently concluded a visit to Washington, where he negotiated trade agreements.

Key developments:

Japan agreed to import more U.S. natural gas and expressed interest in an Alaskan LNG pipeline project.

Instead of allowing Nippon Steel to acquire U.S. Steel, Japan proposed investing heavily in the U.S. steel industry.

Japan remains the largest foreign investor in the U.S., pledging to expand investments to $1 trillion from $783.3 billion in 2023.

Analysts suggest Japan may avoid the aggressive trade tactics the U.S. has deployed against Canada, Mexico, and China. James Brady, Vice President at Teneo, described Japan as one of Trump’s most favored nations in trade relations.

China Braces for Retaliatory Measures

China remains the primary target of Trump’s new tariff policies. Last week, the U.S. imposed an additional 10% blanket tariff on Chinese goods, while Canada and Mexico received exemptions.

Beijing retaliated on Monday with new tariffs on select U.S. imports. Reports suggest China attempted to arrange a direct call between President Xi Jinping and Trump, but negotiations failed.

Outlook

As Trump moves forward with reciprocal tariff policies, Asian economies are scrambling to adjust. Vietnam and India face the highest risks, while Japan appears to have secured a strategic advantage. China’s trade war with the U.S. shows no signs of de-escalating, and further economic tensions remain likely in the coming months.

[news365timesindia]

[ad_1] Chilean President Gabriel Boric Font praised Prime Minister Narendra Modi’s exceptional qualities, noting that PM Modi can talk to every leader in the world, adding that he is a “key geopolitical player nowadays.” In his remarks at the Rashtrapati Bhawan, he said, President Modi, you have the status nowadays that you can talk to every leader of the world. You’re supporting Trump, Zelenskyy, the European Union, and the Latin American leaders in Greece or Iran. That is something that no other leader can say now. So you’re a key player in the geopolitical atmosphere nowadays, he said. #WATCH | Delhi | Speaking on India’s geopolitical stance, Chile President Gabriel Boric Font says, “… India is committed to peace in the world. PM Modi has a weird status nowadays that he can talk to every leader of the world, Mr Putin, Mr Trump, Mr Zelenskyy and the European… pic.twitter.com/5rm8YhgKxF — ANI (@ANI) April 2, 2025 He also expressed gratitude for his warm welcome in India and stated, “I am here for the first time for a State visit… I want to thank you for the warm welcome we have received here…for the past 16 years, no one from Chile has come here, and in that 16 years, India has changed a lot.” Upon his arrival, President Droupadi Murmu hosted a banquet on Tuesday in honour of Chilean President Gabriel Boric Font at Rashtrapati Bhavan. Further, he stated that ‘Chile wants to work on our relationship with India.’ “Chile is a country that is connected to the world, and now we want to work on our relationship with India. Today, we have signed several MoUs,” he said. Further, he highlighted the significance of his country’s relationship with India, emphasizing their shared commitment to strategic autonomy and mutual cooperation. If you want to fact-check any story, WhatsApp it now on +91 11 7127 9799 or Click Here “Chile is a country that is connected to the world. We do not depend on one special country. Still, we have relationships with China, the United States, the European Union, the countries from our region, Latin America, the countries from Asia Pacific, Japan, Indonesia, and Australia. Now we want to work more deep in our relationships with India and we have given some important steps today,” President Boric said. “As you said in the meeting that we had with Prime Minister Modi in his third mandate, we have subscribed to some agreements and MoUs in such important issues as cultural exchange, Antarctic investigation, Chile is the door for the world to the Antarctic continent,” he added. At PM Modi’s invitation, the Chilean president is visiting India from 1 to 5 April 2025 to commemorate the completion of 76 years of diplomatic relations between the two countries. -| United for progress. PM @narendramodi & President @GabrielBoric of Chile held wide ranging discussions at Hyderabad House today. Both leaders welcomed the launch of CEPA negotiations to further deepen - ties in trade, science & technology, critical minerals, health,… pic.twitter.com/NOrW3kyKKP — Randhir Jaiswal (@MEAIndia) April 1, 2025 President Boric is accompanied by Ministers of Foreign Affairs, Agriculture, Mining, Women and Gender Equality, Culture, Arts and Heritage, Members of Parliament, Senior Officials, and a large number of business leaders. In addition to New Delhi, President Boric will visit Agra, Mumbai, and Bengaluru. This is President Boric’s first visit to India. Both President Boric and Prime Minister Modi first met on the sidelines of the G20 Summit in Rio de Janeiro in November 2024, MEA stated. He was accorded a warm and ceremonial welcome on arrival at Air Force Station Palam. PM Modi held bilateral talks with President Boric at Hyderabad House on Tuesday. He met President Droupadi Murmu, who hosted a Banquet in his honour and accompanied delegation. S Jaishankar, External Affairs Minister of India, called on President Boric. [ad_2] Source link