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2025: A Year of Turbulence and Triumph in US-India Relations

The year 2025 has been a pivotal one for US-India relations, characterized by both significant challenges and notable achievements. From trade negotiations aimed at boosting bilateral trade to a landmark defense framework agreement, the partnership has faced tests from tariffs and immigration policies. Prime Minister Modi's visit to the US and ongoing dialogues with President Trump highlight the strategic importance of their relationship. As both nations navigate these complexities, they continue to work towards a shared vision of global peace and stability. Explore the full article to understand the nuances of this evolving partnership.
 

A Year of Highs and Lows in US-India Relations


New York/Washington: The relationship between the US and India in 2025 has been marked by significant challenges and milestones, with issues like tariffs, immigration policies, and tensions with Pakistan testing their partnership like never before.


Prime Minister Narendra Modi's visit to the US for discussions with President Donald Trump and the establishment of a decade-long defense framework were pivotal moments in this evolving relationship.


The year commenced positively with Modi's trip to Washington, DC, where he held his first bilateral meeting with Trump during the latter's second term in February.


Modi became the fourth foreign leader to meet Trump shortly after his inauguration as the 47th President of the United States.


This meeting underscored the deepening strategic alliance between the two nations.


During their discussions, Trump and Modi outlined plans to initiate negotiations for a comprehensive Bilateral Trade Agreement (BTA) by fall 2025, with an ambitious goal of increasing trade to USD 500 billion by 2030.


In January, India's External Affairs Minister S. Jaishankar represented the country at Trump's inauguration, sitting prominently in the US Capitol Rotunda.


Following the inauguration, Jaishankar participated in the inaugural Quad Foreign Ministers' Meeting alongside his counterparts from Japan and Australia, hosted by Secretary of State Marco Rubio.


However, as the year progressed, the relationship faced hurdles due to disagreements over tariffs and trade policies.


In a notable address to Congress, Trump criticized India for its high tariffs on American goods, marking the beginning of a series of critical remarks regarding India's trade practices.


Trump labeled India a 'very high tariff nation,' with his trade advisor, Peter Navarro, referring to it as the 'Maharaja of tariffs.'


On April 2, dubbed 'Liberation Day' by Trump, he imposed reciprocal tariffs on various nations, including a 26% tariff on Indian imports, which was half of the 52% tariffs India had on US products.


Despite these tensions, Trump frequently asserted that a trade agreement with India was imminent.


Significant progress was made towards a bilateral trade pact when US Vice President JD Vance visited India for extensive discussions with PM Modi.


During Vance's visit, a tragic terror attack occurred on April 22 in Pahalgam, resulting in the deaths of 26 civilians, attributed to The Resistance Front, linked to the Pakistan-based Lashkar-e-Taiba.


In response, India initiated Operation Sindoor, targeting terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir. On May 10, Trump announced a ceasefire between India and Pakistan, claiming credit for brokering peace.


Since then, Trump has repeatedly stated that he resolved the conflict, asserting that trade negotiations played a role in ending hostilities.


In June, a meeting between Modi and Trump was planned during the G7 Leaders' Summit in Canada, but Trump returned to Washington early. Nonetheless, they had a 35-minute phone conversation on June 17.


Foreign Secretary Vikram Misri clarified that Modi emphasized there was no discussion regarding a trade deal or US mediation during the conflict following Operation Sindoor.


Trump's administration also criticized India's purchase of Russian oil, leading to an additional 25% tariff on Indian imports, raising the total tariffs to 50%, among the highest globally.


US lawmakers expressed concern over these tariffs, with Congressman Raja Krishnamoorthi highlighting the strain they placed on US-India relations.


The Trump administration intensified its immigration policies, imposing strict regulations on visas like the H-1B, which many Indian professionals rely on to work in the US.


Labeling the misuse of the H-1B program a national security concern, Trump introduced a USD 100,000 fee for new H-1B visas, causing widespread anxiety among Indian workers.


Later, Trump appeared to support the H-1B program, acknowledging the need for global talent in the US.


Despite these challenges, areas of cooperation emerged, particularly in counter-terrorism, with the US extraditing Tahawwur Hussain Rana to India for his involvement in the 2008 Mumbai attacks. Additionally, the US designated The Resistance Front as a foreign terrorist organization.


In October, the two nations signed a 10-year defense framework agreement, signaling their commitment to strengthening strategic ties and ensuring a free and open Indo-Pacific.


Defence Minister Rajnath Singh and US Secretary of War Pete Hegseth formalized the agreement during discussions in Kuala Lumpur, aiming to mend bilateral relations.


Despite the hurdles, ongoing dialogues between Trump and Modi highlight the strategic significance of their partnership.


Modi recently described his conversation with Trump as 'very warm and engaging,' where they reviewed the progress in their relationship and discussed regional and global issues.


'India and the US will continue to collaborate for global peace, stability, and prosperity,' Modi stated.


Trump has referred to Modi as a 'great friend' and expressed intentions to visit India next year.


There is a bipartisan agreement in Washington regarding the importance of robust US-India relations.