The pressure from the Trump administration has influenced the evolving India-US relationship, as noted in a Foreign Affairs magazine article. Initially expecting a prioritized partnership to counter China, Indian leaders are now exploring alternative alliances. Notably, a recent trade agreement with the European Union signifies a strategic shift in New Delhi’s geoeconomic approach.
The trade deal with the EU, hailed as the “mother of all deals” by European Commission President Ursula von der Leyen, is projected to bring about 30 billion euros in export gains for both sides. This agreement, coupled with a new defense pact and various other deals, marks India’s efforts to diversify its economy and reduce dependence on any single dominant power.
The article also proposes India’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), recognized as a crucial trade bloc in Asia. Despite initial US withdrawal from the Trans-Pacific Partnership, the CPTPP has gained traction with 12 member countries, constituting a significant portion of the global economy. India’s potential inclusion in the CPTPP could enhance regional supply chain integration and boost exports significantly.
