India-US Relations Deteriorate Sharply During Trump’s Second Term

WASHINGTON: Relations between India and the United States have significantly worsened during President Donald Trump’s second term, dealing both economic and political challenges to Prime Minister Narendra Modi’s government, according to an analysis published by the Financial Times.

The report, highlighted by 24NewsHD, noted that the growing strain in bilateral ties has affected India’s most influential billionaires, undermining years of efforts to build economic and political goodwill in Washington. The downturn is largely attributed to Modi’s Hindutva-oriented domestic agenda and a foreign policy described as contradictory and opportunistic, which has increasingly alienated US policymakers.

Despite spending millions on lobbying firms, Indian corporate elites have been unable to stabilise trade relations with the US. The persistence of legal cases against industrialist Gautam Adani illustrates the limits of personal diplomacy and corporate lobbying in influencing American legal and regulatory priorities.

The Financial Times further notes that India’s credibility as a reliable US partner in South Asia has eroded due to strategic and diplomatic setbacks, leaving Washington less confident in New Delhi’s ability to manage regional challenges. This lack of trust is reflected in the limited direct engagement between Modi and Trump amid escalating tariff disputes.

The situation has been complicated by Trump’s simultaneous pursuit of closer ties with Pakistan, indicating a shift in US regional priorities. Analysts warn that India could face intensified economic and legal pressure if it continues to diverge from Washington’s expectations.

Read more: Trump Warns Iran of “Severe Consequences” Over Nuclear Program

US concerns also include India’s continued import and refining of Russian oil, coupled with the imposition of a 50 percent tariff on Indian products, raising doubts about India’s strategic autonomy. Major conglomerates, including those linked to Mukesh Ambani, reportedly earned billions through refining discounted Russian crude, further fueling US scrutiny.

While the US once considered India a key counterweight to China, analysts argue that recent actions by New Delhi have cast doubt on its reliability. Heightened India–Pakistan tensions and the risk of broader regional conflict have only deepened American scepticism, creating uncertainty about the future trajectory of India–US relations.