Trump Softens Stand on India, Modi’s Diplomacy Forces U.S. to Rethink Trade and Geopolitics

In a surprising shift in tone, U.S. President Donald Trump has signaled a softer approach toward India, praising Prime Minister Narendra Modi and expressing optimism about a mutually beneficial trade deal. The change comes as India’s assertive diplomacy and evolving geopolitical position have forced the U.S. to recalibrate its stance.

Trump Acknowledges Modi’s Leadership

At the World Economic Forum in Davos, Switzerland, Trump described PM Modi as “a remarkable individual and a close friend,” adding that the two nations are poised to strike “a good trade deal.” This marks a sharp departure from Trump’s earlier tough measures, including imposing 50% tariffs on Indian imports due to India’s crude oil purchases from Russia. Despite such pressure, India has maintained that its policies are driven by national interests and will not bow to external coercion.

India’s Rising Economic and Strategic Influence

Trump’s change in approach coincides with India’s growing stature on the global stage. David Rubenstein, co-founder of the U.S.-based private equity firm Carlyle Group, stated in an ET interview that India could become the world’s largest economy within the next 20-30 years. India’s expanding economic clout, particularly its forthcoming Free Trade Agreement (FTA) with the European Union covering nearly 2 billion people and 25% of global GDP, has created a strategic imperative for the U.S. to engage India more constructively.

Expanding Influence in the Gulf and Defense Sector

India’s influence in the Gulf region is also on the rise. The recent India-UAE trade agreement aims to double bilateral trade to $200 billion by 2032, while a historic strategic defense partnership has also been signed. Similarly, India and the EU are finalizing a new security and defense cooperation pact, signaling India’s emergence as a major global defense and economic power.

Modi’s Diplomatic Strategy Bears Fruit

While Trump engaged in global brinkmanship—threatening tariffs, pressuring allies, and intervening in geopolitical conflicts—India, under Modi’s leadership, pursued careful, interest-driven diplomacy. By leveraging its growing economic and strategic influence, India has successfully negotiated from a position of strength, compelling even the U.S. to recalibrate its approach and acknowledge India’s rising global importance.

India’s measured yet assertive foreign policy has not only secured economic gains but also established the country as a key geopolitical player, earning global recognition and strategic respect.