India's Trade Dilemma: Balancing Pride and Progress

India finds itself in a tricky spot with trade talks with the U. S. under President Trump. The main issue isn't just about economics, but also about politics and personal egos. India's hesitation to publicly credit Trump for helping to ease tensions between India and Pakistan has ruffled feathers. Meanwhile, Pakistan, a smaller player, has managed to secure better trade terms by being more openly appreciative of Trump's efforts. India's export-heavy industries, like gems, textiles, and pharmaceuticals, are bracing for impact. New tariffs could slow down India's economic growth and make it less appealing for businesses compared to neighbors like Bangladesh and Vietnam. The U. S. has already imposed a 25% tariff, with even higher ones looming if India doesn't stop buying Russian oil. Prime Minister Modi is in a tough position. Acknowledging Trump's role in the India-Pakistan ceasefire could be seen as a sign of weakness at home, where Modi has built a strongman image. Meanwhile, stopping Russian oil imports might not be too hard economically, but it's a tricky political move. India has some cards to play. Both countries have agreed to boost trade to $500 billion by 2030. India could lower tariffs on U. S. pharmaceuticals or increase purchases of American energy and defense equipment. But opening up the agriculture sector is a sensitive topic, given the massive protests India saw in 2020 and 2021. Defense deals could be a way forward. India has shown interest in buying more U. S. military gear, like missiles and patrol aircraft. Pushing these deals forward could help smooth things over with Trump.