India, undoubtedly, stands at a defining crossroads. Second, it wants to deepen trade relations with Washington, and at the same time protect its growing clout among key BRICS members. As the deadline for a potential trade agreement looms, New Delhi faces a complex landscape shaped by geopolitical dynamics and economic opportunities.
India has also propelled negotiations on free trade agreements with other major partners, such as the Maldives and the European Union. These negotiations are a sign of New Delhi’s deep diplomatic engagement to bolster its economic presence. Of particular significance is India’s relationship with Washington, which remains solid as the United States stands as India’s largest global partner. This mutually beneficial link is where India will find the strong arm of leverage that will give it the upper hand in negotiating beneficial bilateral trade agreements.
Experts suggest that India’s participation in BRICS could afford New Delhi “a degree of flexibility in U.S.-India deals,” according to Harsh V. Pant, a prominent academic and policy analyst. This flexibility will be increasingly important as the U.S. competes on all fronts with China’s influence over global supply chains. By moving their manufacturing to India, American companies can reach a natural third-way answer that meets each side’s goals.
“Strategically, the U.S. has little interest in alienating India. It sees India as a strong partner that can shape the Indo-Pacific landscape.” – Harsh V. Pant
India’s emerging role as a counterbalance to China has a lot of momentum right now in Washington. As the United States seeks to reduce its dependency on Chinese production, India has proven to be a natural partner. This potential shift could allow India to “cut China out and position the U.S. more strategically.” Current debates over trade agreements are a testament to this realization. India’s focus is on what it can get from the U.S. in return.
Former President Donald Trump had teased several times that a trade agreement with India was just about done. He is hopeful the framework for this agreement is taking shape. India might get better treatment from the Trump administration if their interests converge. Without this alignment, the agreement stands little chance of pushing U.S. officials to care about the interests of India.
In its recently concluded trade agreement with the United Kingdom, India pulled off another big win. It defended its most sensitive agricultural sectors effectively from tariff concessions. This accomplishment marks a high point in India’s interest in cutting-edge domestic industry protection, especially for those industries that are important to the Indian economy.
“We are always very sensitive to the interests of our farmers, the interests of our Micro, Small, and Medium Enterprises, and will ensure that our areas of concern are well protected.” – Piyush Goyal, India’s Minister of Commerce and Industry
As India continues to steer these negotiations, it will find itself under greater pressure from China inside of BRICS. New Delhi’s membership has prompted China to view India as a competitor for dominance in the bloc. This view makes India’s diplomatic needle all the more difficult to thread. Nevertheless, in adversity lies opportunity, and India has turned the situation around with remarkable finesse. It has, after all, managed to dodge Trump’s ire in the middle of this great power tug-of-war.
In the United States’ view, India’s role in helping to stabilize the great power rivalry between the U.S. and China is “very, very critical.” The U.S. can improve its position relative to China and other Indo-Pacific rivals by increasing its strategic cooperation with India. This step would serve to limit Chinese influence inside BRICS.
India’s quieter diplomacy seeks to convince U.S. leaders that it was not part of plans to establish an alternative currency. This strong stance is important to ensure India’s leadership position and credibility in the evolving discussions on international financial architecture. India is tightening the noose on Moscow while deepening its partnership with Washington. This shift would make India a major partner in the United States’ developing strategy to counter China’s economic reach.