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India joined the World Trade Organization (WTO) on January 1, 1995. India was also a member of the General Agreement on Tariffs and Trade (GATT), the WTO’s predecessor, from July 8, 1948. China joined the World Trade Organization (WTO) on December 11, 2001. This came after 15 years of negotiations and significant economic reforms. China used its new found status to further its economy, reducing tariffs, allowing greater foreign investment in key sectors like banking. In spite of the 1991 reforms, India continued to follow a largely protectionist regime as it does to this day. Today there is another opportunity for India to catch up in the face of trade and geopolitical adversities in the world. India has to exploit the situation rather than resign behind a high tariff regime and protectionism.
Donald J Trump won a popular vote to become POTUS. ALL said and done, whether the world likes it or not, DJT with the backing of the richest man in the world (by a long shot), Elon Musk, is damn powerful and should not be taken lightly. Especially when he is exploding, unpredictable and has the backing of the senate and the congress for his unilateral actions.
During the meeting, President Trump and Prime Minister Modi launched a new initiative – the “U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century” – to drive transformative change across key pillars of cooperation. Under this initiative, they committed to a results-driven agenda with initial outcomes this year to demonstrate the level of trust for a mutually beneficial partnership.
Within weeks of taking charge, his rhetoric (and limited actions) on Panama, illegal immigration, DOGE actions (internal), statements on Greenland and Gaza and VP JD Vance’s speech in Europe at the Munich security Conference (google it, it is very intriguing) are more than amusing. Trump has to be taken seriously if not literally. Like him or not, the world will have to deal with him for the present.
Soldiers like me know that half the battle is won when contact with the enemy is established. That is when we are sure of where he is and by watching him from close quarters, we can learn more about him for planned future actions, whatever they may be.
To this end it was important for India to meet the US at summit level as soon as possible. This has been done in quick time. The President of the United States of America, Donald J. Trump hosted the Prime Minister of India, Narendra Modi for an Official working visit in Washington, DC on February 13, 2025. What transpired in the meeting may not be all good for the US or India. At least, it seems a direction for a way forward has been achieved with a substantial, joint statement issued by the leaders at the end of the talks. The implications are beyond optics, social media forwards, off the cuff comments and fault finding. For such events, a lot of back-channel diplomacy, understanding and propositions beyond what we see would have taken place. Going forward there will yet be a lot of officials’ level meetings and discussions. What we should note is the messaging and superficial substance.
A white house communique said “As the leaders of sovereign and vibrant democracies that value freedom, the rule of law, human rights, and pluralism, President Trump and Prime Minister Modi reaffirmed the strength of the India-U.S. Comprehensive Global Strategic Partnership, anchored in mutual trust, shared interests, goodwill and robust engagement of their citizens.” A major debate, as expected, has broken out in the media including the social media, on the tariff proposals by the US which calls India a high tariff regime. This is a fact. Among current tariff differential between the US and the Asian countries, India ranks a high second – India +8.2%, S Korea11.7%, Thailand 3.1%, Vietnam -.2%, Taiwan +,9%, Philippines +1.8%, Malaysia +.7%.
Donald J Trump is doing a good turn for India by forcing it to lower tariffs. The sensational narratives may not make it apparent with bullying and National pride etc. thrown in. This may be the best thing that is happening to Indian economy after its “back to the wall” progressive reforms in 1991. Lowering of tariff by India and entering into a trade agreement with the US may do the Indian economy good. Developing countries like India can take this as an opportunity to improve trade relations with the US. Also, with lowering of tariffs, India could be in a better position to strike superior bargains, like transfer of technologies, in terms of trade deal. This is a good time for Inia to clean up a high tariff regime.
Import tariffs are not a major revenue consideration for India. Non-tariff measures may be more effective to curb Chinese imports flooding the markets.
(The author is an Indian Army veteran and a contemporary affairs commentator. The views are personal. He can be reached at kl.viswanathan@gmail.com )
These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.