Indo-US reset

India is apparently back on the mosaic of trade and commerce with the US, as both cheered a deal with little statistics to boast. The agreement was reached between President Trump and Prime Minister Modi recently as they conferred on critical minerals, energy security, QUAD and nuclear riddles. India's External Affairs Minister Dr Jaishankar and his US counterpart Marco Rubio, meeting in Washington, announced they had worked together to "unlock new economic opportunities and advance shared energy security goals". That pronouncement, however, has not been well received in India as the opposition demanded details of the deal to be laid before the parliament, as reports poured in that the BJP government has promised to buy oil from across the Atlantic at the cost of its evergreen understanding with the Russians.

Ambiguity is in vogue as both sides are refusing to share the salient features of the deal. A broad outline, nonetheless, points out that Trump has climbed down the ladder and hinted at 18% tariffs on India from his erstwhile threat of 50%.

India, likewise, has agreed to lower barriers for a range of American exports and increase purchases of US goods, including energy. It is understood that India's tariff reductions on nuts, fruits and vegetables, and on access to wine, has come as a 'big win' for the US, opening a market of more than a billion people to American products. At the same time, India has held back access to markets for rice, beef, soybeans, sugar and dairy, which are considered political areas for an agrarian India. A prompt rejoinder from Moscow saying that it is not aware of Delhi going the Washington way to buy oil has kept economic pundits on edge.

This deal is primarily being seen as a reset of relations. Trump's decision to slap a hectic fee of $100,000 on HI-B skilled visa seekers and demoting Delhi's role in South Asia vis-à-vis Beijing were seen as a rupture. Moreover, while Pakistan had clinched a trade deal with 19% tariffs, this single percentage favour to India surely has realpolitik considerations. Yet, little is known whether or not this impulsive nod will stand the litmus test of veracity.