India's Strategic Maneuvering in Response to Trump's Policies
India has adeptly managed to navigate the challenges posed by the Trump administration, primarily by accommodating key US concerns on immigration and tariffs. However, with India assuming the BRICS presidency, complexities may arise, particularly with Trump's stance on de-dollarisation and anti-American policies.
BRICS Presidency Challenges
- The BRICS grouping, especially Russia, China, and South Africa, is already under Trump's scrutiny.
- India, while not challenging the US on de-dollarisation, risks becoming a collateral casualty due to its role in BRICS.
India-US Trade Relations
- India has enjoyed a trade surplus of $32 billion, with bilateral trade exceeding $118 billion in 2023-24.
- Efforts to align with US interests include tax cuts on farm products, imports, and increased purchases of LNG and defense equipment.
- India's potential as an alternative manufacturing base to China is being highlighted.
Trump's Tariff Policies
- India faced a 26% tariff under 'Liberation Day,' which was later paused but remains a looming threat.
- Potential tariffs on copper (50%) and pharmaceuticals (200%) could heavily impact India.
Global Trade & Political Dynamics
- The US-China trade agreement may ease US access to Chinese minerals but maintain high tariffs.
- The recent BRICS summit saw low participation from key leaders and hinted at diluted coherence with new members like Egypt and Indonesia.
India's Diplomatic Strategies
- Under its BRICS presidency, India aims to redefine the bloc with a focus on resilience, innovation, and cooperation, prioritizing 'global south' issues.
- India remains cautious, seeking to avoid direct conflict with US policies.
