&w=3840&q=100)
What the US gets wrong about India's Brics membership and Russian arms buys
US Commerce Secretary Howard Lutnick said that India being a part of Brics, which he sees as a grouping that is bent on not supporting the dollar and dollar hegemony, is 'not really the way to make friends and influence people in America' read more
US Commerce Secretary Howard Lutnick recently remarked that India's historical preference for Russian military equipment and its participation in Brics have been points of contention in US-India relations.
Speaking at the eighth US-India Strategic Partnership Forum in Washington, DC, he said, 'There were certain things that the Indian government did that generally rubbed the United States the wrong way[…]For instance, you generally buy your military gear from Russia. That's a way to kind of get under the skin of America if you're going to buy your armaments from Russia.'
STORY CONTINUES BELOW THIS AD
Lutnick further said that India being a part of Brics, which he characterised as a grouping that is bent on not supporting the dollar and dollar hegemony, is 'not really the way to make friends and influence people in America.'
However, his perspective overlooks the nuanced historical and strategic factors that have shaped India's defence procurement and multilateral engagements.
Historical context of India's defence procurement
India's reliance on Russian arms is rooted in historical circumstances, not its membership of Brics. In fact, it is also very closely linked to the US foreign policy during the 1960s-70s.
During the Cold War, the United States aligned with Pakistan, providing it with military support to counter Soviet influence in the region. Consequently, India turned to the Soviet Union for defence equipment, leading to a longstanding partnership that included the supply of MiG-21 jets, T-55 tanks, and other military hardware.
This relationship was further solidified during the 1971 Indo-Pakistani War, when the Soviet Union supported India diplomatically and militarily, while the US sided with Pakistan. The Indo-Soviet Treaty of Friendship and Cooperation signed in 1971 exemplified this strategic partnership.
Even in the post-Cold War era, the US weapons exports continued to come with many strings attached. In several of its arms deals, Washington has gone so far as to impose conditions about how the buyer nation may use these systems.
A prime example is the restriction on Pakistan for how it may use the US-made F-16s. It is not surprising that this hegemonic attitude from Washington has kept buyers at bay.
STORY CONTINUES BELOW THIS AD
Evolving defence partnerships
In recent years, India has diversified its defence procurement, reducing its reliance on Russian equipment. The share of Russian arms in India's imports decreased from 76 per cent in 2009 to 36 per cent in 2023.
India has increasingly engaged with Western suppliers, notably the US and France, acquiring advanced systems such as the Rafale fighter jets and P-8I maritime patrol aircraft.
Collaborative initiatives like the Defence Technology and Trade Initiative (DTTI) and INDUS-X have further strengthened US-India defence ties, focusing on the co-development and co-production of military technologies.
India's role in Brics
India's participation in Brics is often viewed through the lens of its relations with Russia and China. However, India has used its position within the grouping to advocate for reforms in global governance and to promote the interests of the Global South. India has also resisted efforts by China to dominate the Brics agenda, particularly regarding initiatives like the Belt and Road Initiative.
By remaining in Brics, India serves as a counterbalance to China's influence, ensuring that the bloc does not become a platform for Chinese geopolitical ambitions— something the US would also want. This strategic engagement allows India to maintain its autonomy while contributing to a multipolar world order.
Rather than viewing India's actions as contrary to US interests, recognising the complexities of its foreign policy can pave the way for deeper and more meaningful cooperation between the two democracies.
Alas, Lutnick has not gotten that quite right.
With inputs from agencies
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
11 minutes ago
- Time of India
‘Call me a fugitive, not a thief': Vijay Mallya says sorry for Kingfisher crash, not the ‘chor' tag
Vijay Mallya publicly apologized for the failure of Kingfisher Airlines, acknowledging its collapse while denying allegations of theft and criminal intent. He defended his decision to stay away from India, asserting he didn't 'run away' but left on a pre-scheduled visit. Mallya expressed willingness to return to India if assured a fair trial and dignified life. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Business tycoon Vijay Mallya issued a rare and public apology for the failure of Kingfisher Airlines , while strongly denying allegations of theft and defending his reasons for staying away from India 'I apologise to everyone for the failure of Kingfisher Airlines ,' Mallya said during a four-hour podcast with entrepreneur Raj Shamani released on Thursday, acknowledging the collapse of the now-defunct airline that once symbolised his flamboyant business he maintained that the situation was more complex than often portrayed and denied any criminal intent Moreover, in the podcast, Mallya said he would consider returning to India if assured of a fair trial and a dignified existence. "If I have a fair assurance of a fair trail and dignified existence in India, I will think about it (returning to India) seriously."Addressing the allegations of financial misconduct , Mallya said, 'You may call me a fugitive , but I didn't run away. I flew on a prescheduled visit. Fair enough, I didn't return for reasons that I consider are valid… so if you want to call me a fugitive, go ahead. But where is the 'chor' (thief) coming from? Where is the 'chori' (theft)?'The former businessman is accused of defaulting on loans worth over ₹9,000 crore extended to Kingfisher Airlines by a consortium of Indian banks. He has been fighting extradition proceedings in the United Kingdom, where he has lived since multiple legal setbacks, including a UK court ruling in favor of his extradition in 2018, Mallya continues to contest his return to India, citing unfair treatment and media trials.
Time of India
11 minutes ago
- Time of India
Rising uncertainty over trade wars and de-dollarisation are pushing up global demand for gold — its supply is limited: Campbell R. Harvey
Campbell R. Harvey explains gold's enduring value, citing its historical stability from ancient times to today. He notes that the financialization of gold through ETFs and geopolitical factors like de-dollarization influence its price. While volatile in the short term, gold serves as a long-term store of value and a potential hedge against stock market downturns, offering portfolio diversification. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Campbell R. Harvey is Professor of Finance at the Fuqua School of Business, Duke University. Speaking to Srijana Mitra Das, he discusses the value of gold — through the ages:A. Part of my work looks at gold historically and why this is so valuable now. Gold has a very long track record which spans millennia. It's easy to work with because it's a soft metal. It doesn't tarnish — it keeps its lustre and it has artistic worth. Also, gold has held its value through time. I tell two stories about that — one is the cost of a loaf of bread in Nebuchadnezzar's time around 2,500 years ago. There is historical data on how many loaves you could buy for an ounce of gold then. If you convert that to today's prices, it's about $7 a loaf — that's what I pay at my artisanal bakery other story dates from Roman times almost 2,000 years ago in Emperor Augustus' reign. There is data on how much Roman centurions were paid in gold as well as the coins themselves to discern the gold's purity — what Roman centurions were paid in gold 2,000 years ago would cover the wage of an army captain in the US today. That means gold has held its value over the long term.A. Yes. In recent years, the first driver has been the financialisation of gold — physical gold is awkward to store. People who might have wanted it in their portfolio didn't want to take the risk of buying the actual metal. Exchange-Traded Funds (ETFs) were introduced in the United States in 2004 — that made it possible for the average investor to hold gold at 25 to 40 basis points a year, with the ETF provider taking care of storage. Institutional investors who didn't want to bother with warehousing bullion could do the same thing — hence, the price of gold increased. Previously, demand was unfulfilled because of institutional constraints — suddenly, those were broken and the price rose. Another force is what I call 'de-dollarisation' or the 'weaponisation' of the US dollar, particularly against Russia in terms of sanctions which have meant Russian entities being banned from the SWIFT system for transfer in US could do this, being the reserve currency of the world. I think certain countries — in particular, China — took note of that. The 'weaponisation' of the dollar spurred a move to be independent of it. Hence, the idea of 'de-dollarisation' with China taking actions consistent with that. One step towards doing this is to bolster the credibility of your own currency — to have gold in reserve does this and China's been a there is heightened uncertainty, given the potential for a trade war. In such times, people tend to increase their allocation to safe assets — gold is in that group. Another issue is a perception that the United States might not be the safe haven it was 10 or 20 years ago. When the US dollar suddenly becomes riskier and Moody's downgrades the US credit rating, some countries start thinking,'We need to diversify our reserve holdings and reduce dollar exposure.' So, you sell bonds — however, you need to replace them with something else. Gold is an option. This isn't just central banks — when uncertainty grows, institutional investors increase safe assets like consider supply and demand dynamics — gold's supply is very sticky, being a combination of mining and re-cycling. Mining supply doesn't move much. Even though gold's price has risen dramatically in recent years, actual mining supply has essentially stayed the same. It's hard to ramp up supply — opening a new mine takes years. Hence, gold prices are very sensitive to shifts in demand.A. Gold holds its value over the long term. I quoted two examples about that, one from 2,000 years ago and one from 2,500 years ago. Historically, gold has held its value over a very long horizon. That's not very relevant for most investors with a much shorter horizon though — and gold is an unreliable inflation hedge over shorter horizons. Its volatility is approximately the same as the S&P we look over the last 20 years, gold has more than held its value — it's actually gained in inflation-adjusted value. But if you look at the 20 years before that, gold underperformed inflation — it did not hold its value. The longer the horizon historically, the better gold is in terms of a hedge. However, gold's risk should also be measured by how it interacts with other assets in your portfolio. It turns out gold historically is uncorrelated with the stock makes it an attractive hedging property. In my research, I've looked at the last 11 major drawdowns in the S&P 500 — each had very large negative returns for the stock market. Gold, in 8 out of 11 situations, provided a positive return. In three, it was negative but that number was small. Gold could actually act to reduce a portfolio's risk — but, given its volatility, sometimes it'll work, sometimes, it won't, as the historical data shows expressed are personal
Hans India
18 minutes ago
- Hans India
Trade Setup for June 6: Nifty eyes RBI cue to breakout towards 25,000+
Indian equities saw a volatile but rangebound session on June 5, with the Nifty 50 closing at 24,751, up 131 points. Despite midday gains of nearly 200 points, the index gave up most of them before ending higher. Support at 24,500 remains strong, keeping the bullish bias intact. 🔑 Key Technical Levels Support: 24,500 Immediate Resistance: 24,900 Breakout Trigger: Sustained close above 24,900 could open doors to 25,000+ 🏦 Eyes on RBI Markets are pricing in a 25 bps repo rate cut by the RBI on June 6 — the third cut this year. A deeper cut could spark bullish sentiment and push Nifty past its current ceiling. 💹 Sector & Stock Highlights Outperformers: Realty, Pharma, Healthcare Underperformers: PSU Banks, Auto, Media Top Gainers: Eicher Motors, Trent, Dr Reddy's Top Laggards: IndusInd Bank, Tata Consumer, Axis Bank Buzzing Stocks: Reliance Industries (+1%) on JPMorgan upgrade DLF, Godrej Properties on continued realty rally Hindustan Zinc (+6%) amid record silver prices 📊 Broader Market Trends Nifty Midcap 100: +0.53% Nifty Smallcap 100: +0.96% (4-month high) 📉 Analyst Views Golden crossover on Nifty's daily chart hints at short-term uptrend (Rupak De) Base formation near 24,500 supports bullish continuation (Devarsh Vakil) Watch for a decisive break above 24,900 for momentum to pick up (Om Mehra) Strategy for Traders: Long bias if Nifty holds above 24,500 and breaks past 24,900 Cautious near resistance if RBI outcome disappoints Watch rate-sensitive sectors (Realty, Banks, Auto) closely post-policy
