AS THE TRUMP 2.0 administration takes shape in Washington, DC, New Delhi is actively strategising to doing business with the new leadership. External Affairs Minister S. Jaishankar, who attended President Trump’s inauguration on behalf of India, had earlier visited the US in December to brief Indian diplomats on India’s approach to engaging with the new administration.
This focus is unsurprising, given the robust ties between the two nations. The United States is India’s largest trading partner, with bilateral trade in goods and services reaching $190 billion. Defence cooperation has grown substantially, with India operating over $20 billion worth of US-origin equipment, including C-130J and C-17 transport aircraft, Apache and Chinook helicopters, MH-60R maritime helicopters and P-8I surveillance aircraft.
Key defence agreements underpin these ties, such as the Security of Supplies Arrangement, the Basic Exchange and Cooperation Agreement, the Communications Compatibility and Security Agreement and the Logistics Exchange Memorandum of Agreement. These frameworks facilitate the integration of military services, assets, and technologies. Additionally, India has a liaison officer posted at the US Special Operations Command in Florida.
One pressing issue for India is the long-pending deal to procure 99 GE F-414 aero-engines for the Tejas Mk2 indigenous light combat aircraft, with potential applications for other fighter jets in development. However, technology transfer remains a critical concern. India’s fighter aircraft shortage is acute, with a requirement of over 760 fighters but an operational strength of just 560. This deficit is particularly pressing given China’s deployment of advanced fifth-generation stealth fighters and its reported support to Pakistan for similar capabilities. India is also keenly awaiting a decision on whether it will be offered the cutting-edge Lockheed Martin F-35 stealth fighter. Trump’s aversion to China’s military expansion may prompt him to address India’s needs. Defence Secretary Pete Hegseth has emphasised strengthening Indo-Pacific alliances to counter Chinese aggression.
India is also acquiring 31 MQ-9B drones from the US in a $4 billion deal, equipped with AGM-114R Hellfire missiles and precision targeting capabilities.
Challenges loom on the horizon. Trump’s opposition to BRICS, particularly its push for “de-dollarisation” and a new currency, could hurt Indian interests. His hard-line policies on Iran and unwavering support for Israel could also hinder India’s role in the International North-South Transport Corridor (INSTC), a vital trade link connecting India, Russia, and Iran.
Navigating these complexities will require deft diplomacy as New Delhi balances its strategic and economic interests in a changing global landscape.