Trump Slaps Tariffs, Modi Fires Back -- Is India Breaking Away from the US?
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The rhetoric is heating up fast. Trump's team has accused India of cheating the US on trade and immigration, and signaled that all options are on the table to respond to its Russian oil purchases. But while the public messaging may sound tough, India isn't giving up much. Officials said US trade talks are still on, but they won't open up politically sensitive sectors like agriculture and dairy. And recent dealslike the one India just signed with the UKsuggest that Modi's government is moving at its own pace, carefully protecting domestic interests even while staying at the negotiating table. The pushback highlights how India, now the world's fastest-growing large economy, is becoming less willing to compromise under outside pressure.
Despite the rising tension, markets aren't panicking. Indian equities climbed on Monday, while the rupee and government bonds also strengthened. The boost came after oil prices dropped sharplythanks to OPEC+ signaling it could raise output in Septemberwhich is a major win for India, a net fuel importer. While Indian refiners are preparing fallback plans in case Russian crude becomes unavailable, there's no sign of a near-term disruption. India is signaling it may not easily yield to pressure, even from a key partner. For global investors watching this unfoldincluding those with exposure to geopolitical-sensitive names like Tesla (NASDAQ:TSLA)India's balancing act between Washington and Moscow could become a defining theme for emerging market strategy in the months ahead.
This article first appeared on GuruFocus.
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