New Delhi has shown that it is capable of shaping the world order and it can find strength amid uncertainties
The President of the United States, Donald Trump, has agreed to lower American tariffs on Indian goods to 18 per cent from 50 per cent. In return, if Trump is to be believed, India will reduce trade barriers and also stop buying Russian oil — and instead will import it from the US and possibly Venezuela.
At first glance, this deal looks like a win for Trump, who’s been pushing hard on trade imbalances and energy dependencies. But India has become centre stage for the world and it has shown that it is capable of shaping the world order. This agreement has been successful in steadying a relationship between two of the world’s largest democracies that had reached its lowest point in decades.
The agreement was concluded after leaders of both nations spoke on Monday. Prime Minister Narendra Modi’s response on X (formerly Twitter) welcomed the tariff relief for “Made in India” products, expressing gratitude, but he did not mention the trade deal. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi wrote on X.
This deal is proof of New Delhi’s growing confidence and a shift towards more proactive diplomacy. By making these moves, India is showing it can diversify its partnerships and lock in long-term stability for its economy. India managed to lower the tariffs with tactical diplomacy and strategy.
The announced tariff reduction comes less than a week after India announced a landmark trade deal with the European Union, part of the country’s efforts to diversify its global partnerships amid uncertainties with the US.
In August 2025, Trump doubled duties on imports from India to 50 per cent to pressure New Delhi to stop buying Russian oil. It was the highest for a country in Asia. Indian markets have felt the pinch since the tariffs were levied by President Trump.
It assumes countries like India are always playing catch-up, responding to threats rather than shaping outcomes. In reality, the world is more interconnected. India’s hesitation to fully cut ties with Russia was pragmatism in a multipolar world.
This agreement flips the script by highlighting India’s strategic maturity. Several analysts are of the opinion that India will not stop buying Russian oil completely; instead, they see it as a deliberate step towards energy diversification. India is agreeing to source from the US and even Venezuela, which opens up new avenues for stable supplies. That is a smart move as it reduces reliance on any single nation.
As for lowering barriers to US goods, it means deeper integration. India gets better access to American tech and investment, crucial for building resilience in areas like EVs and AI. The tariff cut will boost exports by billions, giving the economy a shot in the arm. Prime Minister Modi didn’t just react to pressure, he negotiated from strength. Trump called it a favour out of “friendship”, but PM Modi’s post emphasised mutual benefits and global stability.
It also positions India as a bridge-builder. By weaning off Russian oil, India signals to the West it is a reliable partner without fully alienating Russia.
Some people will say this is still a concession. Halting Russian oil purchases could raise energy costs in the short term, and opening markets might challenge local industries. Some argue India gave up too much leverage over Russia, especially with ongoing defence ties.
But this agreement marks India’s evolution into a confident global player. It is about setting the stage for sustained influence. New Delhi has shown that it is capable of shaping the world order and it can find strength amid uncertainties. India isn’t just responding any more, it is leading. If we recognise that, we’ll better appreciate its rising role on the world stage.
(The writer is a columnist. His articles have appeared in various publications like The Independent, The Globe and Mail, South China Morning Post, The Straits Times, etc. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.)
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