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New Delhi: India and the United States have finalized a landmark trade deal that could reshape economic and strategic ties in Asia. The agreement lowers tariffs on key Indian exports, boosts energy and defense cooperation, and strengthens collaboration in technology and manufacturing sectors.
The deal comes at a time when India balances its longstanding partnership with Russia and ongoing diplomatic engagements with China. Recent virtual meetings between Xi Jinping and Vladimir Putin underscore a broader Eurasian strategic alignment, highlighting the complex environment in which India is advancing its trade and defense agenda.
Key Highlights of the India–US Trade Deal
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Tariffs on several Indian goods entering the U.S. reduced to 18% from as high as 50%.
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Expansion of U.S. exports to India in energy, aviation, and defense equipment.
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Protections retained for Indian agriculture and MSMEs.
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Strengthened collaboration under the Quad framework for technology and critical minerals.
Geopolitical Context
India has maintained a strong strategic partnership with Russia, especially in defense and energy sectors. At the same time, India’s relationship with China is being carefully managed to maintain stability while advancing economic cooperation.
Analysts suggest that the Xi–Putin engagement, combined with India’s U.S. trade breakthrough, reflects a dynamic global environment where countries are recalibrating alliances, trade, and energy strategies. India’s approach of strategic autonomy allows it to maximize economic benefits from the U.S. deal while maintaining security and energy ties with Russia and managing China relations diplomatically.
Why It Matters
The trade deal is not just a commercial milestone. It positions India as a key player in global supply chains, strengthens its energy and defense preparedness, and enhances its leverage in multilateral platforms. By balancing ties with multiple powers, India is signaling economic ambition and geopolitical maturity on the world stage.