India Under The Trump Administration

India Under the Trump Administration (2017-2021),

saw significant developments in several areas, including defense, trade, energy, and regional security. The Trump administration prioritized strengthening ties with India, viewing the country as a key partner in counterbalancing China’s influence in the Indo-Pacific region and promoting stability.

Here’s an overview of the key aspects and changes in India-U.S. relations under Trump’s presidency:


1. Defense and Security Cooperation

The Trump administration and the Indian government under Prime Minister Narendra Modi made substantial progress in defense relations, moving from a buyer-seller dynamic to a more strategic partnership. Major steps included:

  • Designation as a Major Defense Partner: Building on the Obama administration, Trump continued enhancing India’s status as a Major Defense Partner, facilitating access to advanced U.S. defense technology and equipment.
  • Arms Sales: The U.S. approved multi-billion-dollar defense deals, including Apache and Chinook helicopters, M777 howitzers, and advanced surveillance systems. These agreements underscored India’s transition to one of the largest importers of U.S. defense equipment.
  • Foundational Agreements: India and the U.S. finalized foundational agreements that had long been under negotiation:
    • Communications Compatibility and Security Agreement (COMCASA) (2018) enabled secure communication interoperability.
    • Basic Exchange and Cooperation Agreement (BECA) (2020) allowed sharing geospatial intelligence for more precise navigation and missile targeting.
  • Military Exercises: The two nations expanded joint military exercises, such as Tiger Triumph and Malabar, including Japan, which strengthened quadrilateral security cooperation in the Indo-Pacific.

2. Trade and Economic Relations

While defense cooperation flourished, trade relations faced challenges, as the Trump administration pursued an “America First” approach. Key trade developments included:

  • Trade Imbalance: The U.S. trade deficit with India was a major focus, with Trump pushing for greater market access for U.S. goods and services, particularly in agriculture, medical devices, and energy.
  • Tariffs and Disputes: Both nations imposed tariffs on each other’s products. The U.S. removed India from the Generalized System of Preferences (GSP) in 2019, impacting around $5.6 billion in exports from India. India responded by imposing retaliatory tariffs on some American goods.
  • Bilateral Trade Talks: Despite disputes, the two sides worked toward a limited trade deal to resolve some of these issues, though a comprehensive agreement did not materialize.

3. Energy Cooperation

Under Trump, energy cooperation became a priority, transforming the U.S. into a key supplier of oil, liquefied natural gas (LNG), and coal to India. Highlights included:

  • Oil and LNG Exports: The U.S. became a major energy supplier, with American exports helping diversify India’s energy mix and reduce its dependency on Middle Eastern oil.
  • Strategic Energy Partnership: The Strategic Energy Partnership (SEP) was launched in 2018, focusing on areas like oil and gas, renewable energy, energy efficiency, and innovation. This partnership aimed to support India’s growing energy demand in line with climate goals.
  • Civil Nuclear Cooperation: The U.S. supported India’s entry into global nuclear regulatory bodies, reinforcing the two countries’ civil nuclear cooperation.

4. Indo-Pacific Strategy and China Counterbalance

The Trump administration recognized India as a key player in its Free and Open Indo-Pacific Strategy, which aimed to counterbalance China’s expanding influence. Key components included:

  • Quad Revitalization: The U.S. reinvigorated the Quadrilateral Security Dialogue (Quad) with Japan, Australia, and India, strengthening security cooperation across the Indo-Pacific.
  • Support for India on Border Issues: Amidst rising India-China tensions, particularly during the 2020 border skirmishes in Ladakh, the Trump administration expressed clear support for India. The U.S. backed India’s stance on sovereignty and encouraged peaceful resolution.
  • Shared Concerns Over China: Both nations shared concerns over issues such as China’s Belt and Road Initiative (BRI), which the U.S. viewed as debt-trap diplomacy, and China’s assertive posture in the South China Sea and along India’s northern borders.

5. Immigration Policies and H1-B Visa Reforms

One contentious area was Trump’s immigration policies, particularly affecting skilled Indian workers in the tech sector:

  • H1-B Visa Reforms: Trump’s restrictions on H1-B visas, which allow skilled workers to enter the U.S., created challenges for Indian professionals and the tech sector, as many Indian nationals work in U.S.-based tech companies. Tighter H1-B regulations impacted not only individuals but also the Indian IT industry, which relies on these visas to service American clients.
  • Family-Based Immigration Policies: Trump also implemented policies aimed at reducing family-based immigration, which impacted Indian families seeking to reunify in the U.S.

6. Public Diplomacy and High-Profile Visits

Both leaders made high-profile visits to each other’s countries, emphasizing the strength of bilateral ties:

  • “Howdy Modi!” in Houston (2019): Trump attended this large event, celebrating the Indian-American community and strengthening his appeal among Indian-American voters.
  • “Namaste Trump” in Ahmedabad (2020): Modi hosted Trump in India, marking a significant public diplomacy event that showcased the close ties and potential for collaboration across various sectors.

Pros and Cons of India-U.S. Relations under the Trump Administration

Pros:

  • Enhanced Defense Ties: Strengthened security cooperation and high-level defense agreements enhanced India’s strategic capabilities.
  • Energy Independence: Greater access to U.S. energy exports helped diversify India’s energy sources and improve energy security.
  • Regional Security: Stronger collaboration in the Indo-Pacific and with the Quad countries supported India’s position in balancing China’s influence.
  • Public Diplomacy: High-profile public events improved people-to-people relations and increased the visibility of the India-U.S. partnership.

Cons:

  • Trade Disputes: Ongoing tariff issues and loss of GSP status strained economic ties, impacting some Indian exporters.
  • H1-B Visa Restrictions: Trump’s immigration policies created barriers for Indian professionals and affected the Indian IT sector.
  • Unfulfilled Trade Deal: Despite talks, the two nations could not reach a limited trade deal, leaving certain trade issues unresolved.

Conclusion

The Trump administration’s approach to India-U.S. relations was characterized by closer defense, security, and energy ties, while trade and immigration posed some challenges. Overall, the relationship was strengthened, setting a foundation for India to be seen as a critical partner in the Indo-Pacific region. The evolving dynamics under the following U.S. administrations have continued to build on this foundation, seeking a balance of shared interests, security, and economic cooperation.