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The article analyzes India's relationship with the United States under President Donald Trump, arguing that India needs to adopt a more transactional approach to trade negotiations, mirroring Trump's own strategies. The author draws inspiration from Trump's book, The Art of the Deal, suggesting that India has erred in trying to engage with the US based on shared values and long-term geo-strategic goals. The article highlights how other countries have successfully leveraged Trump's ego, family interests, and financial motivations to gain advantages in negotiations. Examples include Japan's use of Ivanka Trump in official meetings, and the lavish praise and gifts showered upon Trump by countries like Qatar, the UAE, and Saudi Arabia. Vietnam's $1.5 billion project with the Trump Organization is also cited as an attempt to curry favor. The author points out that Trump is ruthlessly transactional, prioritizing immediate economic gains over long-term relationships and shared values. This is evident in his approach to Greenland, Gaza, and Ukraine. The article criticizes Trump's characterization of India as a “tariff king” and his push for an extractive trade deal that targets India's agriculture and dairy sectors while raising barriers for Indian automobiles and metals. Geopolitically, the author notes that Trump has not effectively countered Pakistan's support for terrorism and has even offered to do a trade deal with Pakistan. The author emphasizes that India lacks the economic leverage of countries like China and Japan, making it crucial for India to exercise patience and be willing to walk away from a bad deal. The author suggests that India should take a maximalist position on trade gains and propose a deal with zero tariffs on all goods to test America's commitment to mutual trade. The article advocates for a combination of strategies based on Trump's need for publicity and weakness for flattery, as well as hedging geopolitical bets. The author urges India to acquire economic leverage by attracting foreign direct investment, particularly in the manufacturing sector, and by wooing American corporations and Wall Street to become champions of the Indian economy. This requires hard economic reforms. The article concludes that Trump's high-stakes dealmaking on trade is a wake-up call for risk-averse Indian policymakers and an opportunity to reshape the Indian economy and make it globally competitive. The core argument of the article is that India needs to understand and adapt to Trump's dealmaking style, which is characterized by transactionalism, ego-driven motivations, and a focus on immediate economic gains. By mirroring Trump's strategies and developing its own economic leverage, India can secure a fairer trade deal and strengthen its position in the global economy. The article also underscores the importance of patience and strategic thinking in dealing with Trump, as his presidency is temporary, but a bad trade deal could have long-lasting consequences for India. The key takeaway is that India needs to be proactive and assertive in its negotiations with the US, rather than relying on traditional diplomatic approaches based on shared values and long-term relationships.
To elaborate further on the strategies India could employ, the article implicitly calls for a comprehensive re-evaluation of India's diplomatic and economic policies concerning the US. Firstly, understanding Trump's penchant for flattery and publicity is paramount. This doesn't necessarily mean engaging in outright sycophancy, but rather strategically highlighting the benefits that a stronger economic partnership with India would bring to the US, particularly in terms of job creation and market access for American companies. Emphasizing India's potential as a counterweight to China in the Indo-Pacific region could also appeal to Trump's geopolitical concerns. Secondly, India needs to demonstrate its willingness to walk away from a deal that is not in its best interests. This requires a strong negotiating team that is well-prepared, confident, and capable of pushing back against unreasonable demands. It also requires a clear understanding of India's bottom line and a willingness to accept the consequences of not reaching an agreement. This strategy is crucial because it signals strength and earns Trump's respect, which can ultimately lead to a better deal. Thirdly, India needs to focus on acquiring economic leverage. This can be achieved by attracting foreign direct investment, promoting exports, and strengthening its domestic economy. The article specifically mentions the importance of hard economic reforms that make India a more attractive destination for foreign investment, particularly in the manufacturing sector. This would not only boost India's economic growth but also create jobs and improve the living standards of its citizens. Moreover, India needs to actively court American corporations and Wall Street to become champions of the Indian economy. This can be done by creating a more favorable business environment, reducing regulatory burdens, and providing incentives for American companies to invest in India. By enmeshing US corporate interests with India's economic emergence, India can create a powerful lobby that will advocate for its interests in Washington. Fourthly, the article implies the need for India to diversify its trade relationships and explore alternative markets. While the US remains an important trading partner, India should not be overly reliant on any single country. By diversifying its trade relationships, India can reduce its vulnerability to external shocks and increase its bargaining power in negotiations with the US. This could involve strengthening ties with other Asian countries, such as Japan, South Korea, and Vietnam, as well as exploring new markets in Africa and Latin America.
Finally, the article implicitly suggests that India should adopt a more proactive and assertive approach to its relationship with the US. This means taking the initiative, setting the agenda, and clearly communicating its interests and priorities. It also means being willing to challenge the US when necessary and defending its own sovereignty and independence. This proactive approach requires a strong and confident leadership that is willing to stand up for India's interests on the world stage. It also requires a well-coordinated and effective diplomatic apparatus that can effectively communicate India's message to the US government and the American public. In addition to these specific strategies, the article also highlights the importance of patience and strategic thinking in dealing with Trump. Trump's presidency is temporary, and India should not make any hasty decisions that could have long-lasting consequences for its economy or its relationship with the US. Instead, India should focus on building a strong and sustainable economic partnership with the US that is based on mutual benefit and respect. This requires a long-term perspective and a willingness to invest in the relationship over time. In conclusion, the article provides a valuable analysis of India's relationship with the US under President Donald Trump and offers a number of insightful suggestions for how India can navigate this challenging period. By adopting a more transactional approach, demonstrating its willingness to walk away from a bad deal, acquiring economic leverage, diversifying its trade relationships, and adopting a more proactive and assertive approach to its relationship with the US, India can secure a fairer trade deal and strengthen its position in the global economy. The article underscores the importance of strategic thinking, patience, and a long-term perspective in dealing with Trump, and it provides a valuable framework for understanding the complexities of the India-US relationship. The author's call for hard economic reforms and a more proactive diplomatic strategy is particularly relevant in the context of the evolving global landscape and the growing competition between the US and China. India's ability to navigate this complex geopolitical environment will be crucial to its future economic success and its role as a major power in the 21st century. By following the advice outlined in the article, India can not only secure a better trade deal with the US but also strengthen its overall position in the world. The call for a more assertive and transactional approach, mirroring some of Trump's own strategies, is a bold but necessary step for India to take in order to safeguard its economic interests and maintain its strategic autonomy. The article serves as a wake-up call for Indian policymakers, urging them to adopt a more proactive and strategic approach to their relationship with the US and to embrace the challenges and opportunities of the 21st century.
Source: India should use Trump’s playbook on Trump for a fair trade deal