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India - US Relations Going Sour After 27 Years

India - US Relations Going Sour After 27 Years

It was in 1971 that India’s supremacy was challenged by President Nixon of the USA during the Bangladesh Liberation War; which was led by India.

Nixon first warned then Prime Minister Indira Gandhi to stay away from the conflict; and also sent warships into the Bay of Bengal to challenge India.

But by the time the ships arrived; Bangladesh’s independence had already been declared after Pakistan was defeated at the hands of India.

Then in 1974; during Indira Gandhi’s tenure; India tested its first nuclear device; named "Smiling Buddha." The USA reacted angrily; and sanctions followed.

Again in 1998; under Prime Minister Atal Bihari Vajpayee; India conducted nuclear tests in Pokhran; which once again triggered strong reactions from the USA. Then President Bill Clinton imposed fresh sanctions on India.

However; things gradually improved. Whether it was George W. Bush; Barack Obama; Donald Trump or Joe Biden; all administrations referred to India as a strategic partner.

But surprisingly; Trump’s second term has taken a different turn. The atmosphere has soured after nearly 27 years of steady ties.

There have been tariff threats; attempts to isolate India diplomatically; and a tone suggesting India is being treated worse than even adversaries like China.

In fact; Nikki Haley; a prominent Republican leader; publicly questioned Trump in a tweet: How come China’s tariffs are paused for 90 days despite its deep trade ties with Russia; while India is being bullied with tariffs; distancing a long-term ally?

Indeed; Modi’s silence appears to be making Trump more restless. He seems to want India to bend. So far; his tariff warnings haven’t had much impact on the Sensex.

While the stock market dipped in April; it has remained strong and resilient since then; despite all Trump’s provocations.

Frustrated; Trump recently proposed a new measure: a $15,000 caution deposit for tourists from countries whose citizens overstay in the USA; India being one of them. This move is seen as another pressure tactic.

Overall; Trump’s animosity toward India appears to be rising; possibly because India isn’t yielding; and its Prime Minister isn’t reacting to any of Trump’s aggressive remarks; including his outrageous claim that India’s economy is “dead.”

Where this ends remains to be seen. Both India and the USA remain open to dialogue; but it is Trump who continues to escalate the rhetoric without pause.

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