Trump 2.0 and the US-India Partnership: A New Chapter in Strategic Diplomacy

Donald J Trump is back as the 45^th and now the 47^th President of the United States of America. From his inauguration at the Capitol Rotunda - held indoors because even the sun couldn’t compete with Washington’s freezing cold - to his usual flair for the unexpected, the Trump 2.0 era promises big headlines and bigger deals. If the first few days in the office are anything to go by, then perhaps it’s time to fasten our seatbelts as we take a front row seat to what could be a thrill a minute ride.

Trump’s imperatives will likely reshape both US international and domestic markets, with a trickle-down effect on the global economy. His ‘America First’ approach is likely to shape foreign policy, impacting geopolitical dynamics and conflicts. For India, maintaining and strengthening ties with the U.S. will require a careful balance between self-interest and collaboration. This presidency could signal not just a continuation of the US-India partnership, but an opportunity to take it several notches higher—navigating the occasional choppy waters to make it to the promise land.

My take on what could be the key areas to lookout for:

QUAD: India’s geopolitical ace in the Trump deck

The Quadrilateral Security Dialogue (QUAD) has emerged as a cornerstone of India’s geopolitical strategy. Under Trump’s renewed leadership, QUAD’s importance is likely to grow as a counterbalance to China’s expanding influence in the Indo-Pacific region. The QUAD foreign ministers’ meet was the first significant foreign policy event after Trump’s inauguration emphasizing its significance. India needs to leverage this partnership for increased maritime security, deeper military cooperation, and greater participation in regional decision-making with like-minded allies.

“Make America Great Again” Meets “Viksit Bharat”

Trump’s “America First” agenda finds a parallel in Prime Minister Modi’s vision of a “Viksit Bharat” (Developed India). Both nations share aspirations for self-reliance in key industries, creating opportunities for collaboration across strategic and commercial areas. While Trump has been forthright in what could be ‘Tarrifying Prospects’, there’s a belief that a recalibrated approach could unlock smoother trade relations. Continued push by India for supply chain diversification will align with Trump’s focus on reshoring and reducing dependency on China.

Technology Transfer: From Chips to Spacecrafts

If there’s one thing Trump loves, it’s “big” deals—and the US-India tech partnership could shape up to be a blockbuster. Critical technology sectors will likely dominate the partnership’s agenda, particularly under frameworks like the Initiative on Critical and Emerging Technologies (iCET), in strategic ones like cybersecurity, defence and emerging areas such as electronics, semiconductors, among others. One place where this could be a ‘Star’ studded affair is space exploration, think joint moon missions, satellite launches, or even Mars as he alluded to in his inaugural address.

The US Economy: A Boon for India’s Services Sector?

Under Trump 2.0, the US economy might see another growth spurt. For India, this could translate to fresh opportunities for IT services and the outsourcing industry. Two areas to keep an eye for – First, Global Capability Centers (GCCs) as US firms look to drive their global growth agenda by making use of India’s talent pool and driving cost efficiencies. And second, demand for AI-driven solutions and digital services, which will likely spike, creating new opportunities for cutting-edge innovations.

On the trade front, one can expect mini sector specific trade deals which could go some way to alleviate the strain anticipated in global markets and partnerships, reliant on predictable trade and foreign policies.

For India, the key challenge will be balance - leveraging this partnership while maintaining its strategic autonomy. What could work in its favour is the camaraderie between the two leaders which would perhaps be the catalyst. From bear hugs to thrilling speeches, what ‘Howdy Modi’ and ‘Namaste Trump’ signify is that diplomacy can come with a bit of flair infused with great rapport and mutual respect.

With Trump’s first visit to India likely in April, expect both optics and substance. Joint appearances, big-ticket announcements, and maybe another stadium event that could rival the awe of a Coldplay concert. All said and done, one thing is certain: it’ll be a spectacle that you would not want to miss!

A version of this article was published by Financialexpress.com. The same can be read here