5 points looking back at India-US ties during first Donald Trump Presidency

Hours after Donald Trump claimed a historic victory in the US Presidential elections, Prime Minister Narendra Modi said he had a telephonic conversation with his ‘friend’ – the President-elect.

“Looking forward to working closely together once again to further strengthen India-US relations across technology, defence, energy, space and several other sectors,” Modi said in a post on X on Wednesday.

Trump-Modi Bonding

Trump, 78, is all set to assume the highest office in the US in January for the second time. In his first term, between 2017 and 2021, India’s relations with the US saw significant developments in the form of robust engagement in strategic cooperation and shared geopolitical goals, considering China’s expanding influence in South Asia.

Modi and Trump exhibited a strong personal bond during Trump’s first four years in office. Modi’s visit to the US in 2019, followed by a state visit to India by then-President Trump in 2020, symbolised the enhanced bilateral relationship between the two countries.

Strategic Partnership

The US-India ties were strengthened, particularly in defence, counterterrorism, and trade.

The two countries shared concerns over China’s growing influence in the Indo-Pacific region. President Trump also worked to enhance military cooperation, including arms sales and joint exercises. The US recognised India as a key partner in maintaining regional stability.

The revival of the Quad involving the US, India, Japan, and Australia turned out to be an important initiative for regional security, countering China's influence in the region.

Trade Relations and H1-B visa holders

Trade relations, however, saw ups and downs during Trump’s first term. Trump had criticised India’s trade practices, including tariffs. The US also raised import duty on Indian steel and aluminium products during Trump's first term

Trump called India a 'tariff king.' In fact, in May 2019, he terminated India's preferential market access – the Generalised System of Preferences– to the United States, accusing India of not giving the US reasonable access to its markets.

Trump's stance against immigrants and skilled H1-B visa holders had been a sore point in the two countries’ bilateral relationship in his first Presidency. He pushed for reforms to increase the minimum wage for H-1B holders, which makes it harder for skilled Indian tech professionals to obtain these visas.

Defence Cooperation

The two nations strengthened their defence ties through various agreements, including the Communications Compatibility and Security Agreement (COMCASA) in 2018. Both nations showed commitment towards combating terrorism.

In October 2020, India and the US signed the Basic Exchange and Cooperation Agreement for Geospatial Cooperation (BECA). The agreement enhanced intelligence sharing and defence collaboration and allowed for expanded geospatial information sharing between the two countries' armed forces.

India’s defence procurement from the US climbed to $8 billion annually in 2019, after India, in August 2018, was elevated to the Tier I of the Strategic Trade Authorization (STA) license exception, according to a report in The Indian Express. The STA paved the way for high-technology product sales to New Delhi, particularly in civil space and defence sectors.

Regional Matters

In his first term, Trump extended support to India on key regional issues, particulary vis-à-vis India's relations with Pakistan. The US backed the designation of Jaish-e-Mohammed chief Masood Azhar as a global terrorist by the UNSC following the Pulwama attack in 2019. It also supported the grey-listing of Pakistan by the Financial Action Task Force (FATF) in 2018.

The US, under Trump, however, sought to encourage dialogue between India and Pakistan, reflecting a balancing act in its diplomacy.