The Modi government has showcased masterful diplomacy by clinching a landmark US trade agreement, slashing tariffs from 50% to 18% and opening doors for $500 billion in American imports. National Security Advisor Ajit Doval firmly conveyed to US Secretary of State Marco Rubio that India won’t bow to bullying, opting to strategically time the deal on its own terms rather than rushing under Trump-era pressures. This resolute stance underscores Prime Minister Narendra Modi’s vision for equitable partnerships that boost India’s economic sovereignty.
Diplomatic Resilience
Despite US tariffs imposed since August 2025—25% reciprocal plus 25% penalty over Russian oil purchases—India held firm, maintaining export resilience while negotiating robustly. Doval’s message to Rubio emphasized patience through Trump’s term if needed, reflecting the government’s confidence in its diversified trade strategy, including parallel EU talks. PM Modi’s personal rapport with President Trump sealed the deal, with commitments to buy US energy, tech, and agriculture, fostering mutual growth.
Economic Wins for India
The agreement eliminates key non-tariff barriers, enhances market access, and stabilizes the rupee after recent lows, positioning India favorably against competitors like Vietnam and Bangladesh. Exports to the US remain positive, with sectors adapting via diversification and competitiveness drives led by Commerce Minister Piyush Goyal. This deal aligns with Economic Survey 2026 projections, reducing external uncertainties and fueling GDP ambitions.
Broader Global Strategy
Modi’s leadership exemplifies balancing assertiveness with pragmatism, pursuing multiple FTAs while prioritizing the vital US market. By ending Russian oil-linked penalties and embracing ‘Buy American’ at scale, India cements its role as a reliable global partner, driving long-term prosperity.
