Prime Minister Narendra Modi has swiftly made concessions to the White House, reflecting India’s strategy to avoid a trade war with the US under President Donald Trump’s leadership. The recent moves, including tariff reductions and other trade accommodations, show New Delhi’s intent to preserve and enhance its trade, defense, and technology ties with the US while navigating Trump’s aggressive trade policies.

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• Modi government cuts tariffs on imports ranging from textiles to motorcycles, marking a significant trade shift.
• The reductions follow India’s agreement to accept unlawful migrants from the US and continue using the US dollar for trade.
• Modi is invited for an official visit to Washington next week, signaling India’s priority in strengthening ties.
• The rapid changes highlight a more conciliatory approach from India, differing from Modi’s stance during Trump’s first term.
• India aims to benefit from closer relations in trade, defense, and tech-sharing, particularly in the context of shifting global manufacturing.
• Indian officials believe maintaining friendly ties with Trump outweighs potential trade conflict risks.
• India seeks to avoid tariffs amidst growing global concerns over US protectionism and the impact on world markets.
• The US-India bilateral trade surplus stood at $35.3 billion in the fiscal year ending last March.
• Modi’s tariff cuts focus on areas like Harley-Davidson motorcycles, addressing specific grievances raised by Trump.
• The US continues to press India on its high trade barriers and its import of crude oil from Russia, which the US has sanctioned.