Delhi’s Defining Trade Moment

Columnist-M.S.Shanker

For nearly two decades, the India–European Union trade agreement lay frozen in the deep freezer of global diplomacy—18 long years of stalled negotiations, shifting governments, and clashing priorities. On Tuesday, that ice finally cracked. Yes, it can rightly be called the “mother of all deals.” What emerged was not merely a trade pact, but a statement: India is no longer waiting for anyone’s approval to shape its place in the world. And nowhere is that message louder than in Washington. President Donald Trump, who has played “hot and cold” with New Delhi since reclaiming the Oval Office, now finds himself watching from the sidelines as India locks arms with a bloc of 27 European nations—most of them also NATO members—on a framework that spans trade, technology, clean energy, digital cooperation, and strategic supply chains. This is not a transactional handshake. It is a long-term trust pact. For Trump, whose second-term diplomacy has often resembled a monarch’s decree more than a negotiator’s craft, the optics are uncomfortable. While the White House has leaned on tariffs, threats, and public browbeating, New Delhi has leaned into patience, personalization, and persistence. The contrast could not be starker. The India–EU deal is expected to cover bilateral trade flows estimated at over $200 billion annually once fully realized, cutting across pharmaceuticals, automobiles, green technology, semiconductors, and services. More than the numbers, it signals confidence in India as a stable, predictable partner in a world increasingly rattled by geopolitical shocks. Europe is not just diversifying away from overdependence on China; it is consciously anchoring itself to India’s growth story. This is where Trump’s discomfort begins. For years, Washington assumed that strategic alignment—defence deals, Quad cooperation, and shared concerns about Beijing—would automatically translate into trade concessions from India. It did not. Instead, New Delhi insisted on reciprocity, market access, and respect. The result? A U.S.–India trade agreement that remains “on the frying pan,” perpetually promised, perpetually postponed. Trump’s own words have not helped. His penchant for public jabs and “unparliamentary” language—even aimed at leaders with strong domestic and global credibility, Prime Minister Narendra Modi among them—has introduced an edge into a relationship that once thrived on quiet understanding.

Diplomacy, after all, is not a reality show. Nations remember tone as much as terms. Contrast this with Modi’s method. Whether it is Paris, Berlin, Tokyo, Abu Dhabi, or Canberra, his approach has been personal, consistent, and calibrated. He invests in leaders, not just in contracts. That investment is now paying dividends. From defence manufacturing partnerships with France, to digital and clean energy corridors with Europe, to strategic mineral agreements with Australia and African nations, India is assembling a web of trust that extends far beyond any single superpower. Trump’s America, meanwhile, appears increasingly inward-looking and restless. A trade deficit hovering in the tens of billions, protests across major cities, and a polarized domestic climate have turned much of Washington’s focus inward. The irony is hard to miss: a nation long accused of destabilizing democratically elected governments abroad now grappling with turbulence at home. Some in New Delhi whisper a historical analogy—perhaps unkind, but telling—comparing Trump’s governing style to that of a monarch isolated by his own court. The Shah of Iran once believed power could substitute for popular confidence and international goodwill. History, as we know, had other plans. Sensing the shift, Trump has recently assured that a U.S.–India deal is “coming soon.” The urgency is revealing. The India–EU pact has demonstrated that New Delhi has options—and leverage. Defence and space cooperation with the U.S. remains valuable, but it is no longer exclusive. Europe is stepping into arenas once dominated by Washington, from aerospace collaboration to advanced manufacturing. Even Trump’s domestic corporate battles—such as his legal and rhetorical skirmishes with major financial institutions like JP Morgan Satanley—add to the perception of a presidency locked in constant confrontation, at home and abroad. The world, it seems, is increasingly looking east—not just to China, but to India. A nation that negotiates hard, waits long, and signs when the terms align with its long-term interests. Is the India–EU deal a “slap” to Trump’s arrogance? Perhaps not in the theatrical sense. But it is something more potent: a quiet, strategic reminder that in modern geopolitics, influence flows to those who build bridges, not burn them. If Washington wants to remain central to India’s rise, it may need to return to the table with more than promises—and perhaps, with a little humility.

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