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EYE ON INDIA DECEMBER 19, 2025 | The Indian Eye 8

After Putin’s Delhi visit,

Trump recalibrates on India —

and trade optimism returns

A phone call between Donald Trump and Narendra Modi days after Vladimir Putin’s successful
India visit signals a tactical reset in Washington, reviving hopes for an India–US trade breakthrough

OUR BUREAU by improved sentiment and strong
domestic inflows. The rally suggested
Washington, DC/New Delhi+ :
investors see the phone call as more
ew Delhi’s diplomatic cal- than symbolic — a potential inflec-
endar rarely unfolds in iso- tion point.
Nlation, and the timing of US Strategically, the logic is clear.
President Donald Trump’s phone call As geopolitical competition intensi-
to Prime Minister Narendra Modi fies, the US cannot afford to alien-
this week has not gone unnoticed. ate India, a country central to sup-
Coming soon after Russian Presi- ply chain diversification, defence
dent Vladimir Putin’s high-profile cooperation and regional balance
and visibly successful visit to India, against China. Trump’s earlier tar-
the call has injected fresh optimism iff-heavy approach may have played
into stalled India–US trade negotia- well domestically, but it carried costs
tions and hinted at a broader recali- abroad. The visible warmth between
bration in Washington’s approach to Modi and Putin likely served as a re-
New Delhi. minder of those costs.
According to official readouts, For India, the moment offers
Modi and Trump held a “warm and leverage. New Delhi has consistent-
engaging” conversation, review- Trump’s decision to personally dial Modi is being read in New Delhi as a signal of course ly resisted pressure to choose sides,
ing progress in the Comprehensive correction on part of the US (File photo) arguing instead for strategic autono-
Global Strategic Partnership and dis- my. By engaging Putin while keeping
cussing ways to deepen cooperation channels open with Washington, In-
in trade, critical technologies, ener- adversaries. That shift matters. Just days ear- dia has reinforced its value as an in-
gy, defence and security. Both lead- Her remarks captured a growing lier, Trump had warned of possible dependent power rather than a sub-
ers stressed the importance of sus- bipartisan concern in Washington: new tariffs on Indian rice exports, ordinate partner. Trump’s outreach
taining momentum in bilateral trade that an overly transactional and puni- accusing India of “dumping” cheap suggests Washington is recalibrating
talks, which have struggled under the tive approach toward India — partic- produce and harming US farmers. to that reality.
weight of tariffs, geopolitical tensions ularly on trade — could undermine The comments, made alongside the The path to a trade deal, howev-
and policy misalignment. a partnership central to US interests announcement of a USD 12 billion er, remains complex. Structural dif-
On the surface, the call appeared in the Indo-Pacific. Trump’s earlier aid package for American agricul- ferences on tariffs, agriculture, digi-
routine. In context, it was anything but. decisions to impose steep tariffs on ture, rattled negotiators already tal trade and market access will not
Putin’s visit to India — capped Indian goods and publicly criticise grappling with disputes over market disappear overnight. But diplomacy
by high-visibility optics and reaf- New Delhi’s energy ties with Russia access and duties. US lawmakers, in- sets the tone for negotiation, and the
firmed energy, defence and strate- had strained relations. The optics of cluding Representative Pramila Jay- sudden thaw following Putin’s visit
gic ties — underscored New Delhi’s Putin’s embrace of India appear to apal, warned that escalating tariffs has altered that tone.
continued ability to balance relations have sharpened that concern. were hurting both economies, dam- As high-level engagements con-
among competing global powers. Against this backdrop, Trump’s aging businesses and consumers on tinue under the India–US COM-
The now-famous visuals of Modi decision to personally dial Modi is both sides. PACT framework, the message from
and Putin together, including their being read in New Delhi as a signal Yet markets appear to believe this episode is unmistakable: in to-
informal car ride, sparked pointed of course correction. The call took diplomacy may now be catching up day’s multipolar world, pressure tac-
commentary in Washington. At a place even as negotiations for an In- with economic reality. Indian equi- tics have limits. Engagement, even
House Foreign Affairs subcommit- dia–US Bilateral Trade Agreement ties opened higher following news of when driven by strategic anxiety, can
tee hearing, US Representative Syd- were underway, following months of the Modi–Trump conversation, with reopen doors that tariffs alone could
ney Kamlager-Dove said the image limited progress. While no immedi- benchmark indices posting broad- not. For now, optimism has returned
“spoke a thousand words,” warning ate concessions were announced, the based gains. Market experts pointed — not because the hard issues are
that Trump’s coercive policies risked tone marked a shift from confronta- to renewed confidence that trade resolved, but because both sides ap-
pushing strategic partners toward US tion to engagement. talks were “progressing well,” aided pear ready to talk again.

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