External Affairs Minister S. Jaishankar on Thursday said that India is in a prime position to strengthen its relationship with the incoming Trump administration, calling it a “much more advantageous” situation compared to other countries. Speaking at an interactive session hosted by industry chamber ASSOCHAM, Jaishankar shared his thoughts on India’s positive political relationship with US President-elect Donald Trump and the future of bilateral ties.
“India has always had a positive political relationship with Trump,” Jaishankar said, emphasizing that Trump’s view of India has been consistently favorable. While acknowledging that, like any country, India may face some challenges in its dealings with the new administration, Jaishankar stressed that India is not viewing Trump 2.0 as a political hurdle.
“We will have to work out a political equation with America, but I would say when I look around the world today, there are countries who view Trump 2.0 as a political challenge. We are not,” Jaishankar said. “And I think that separates us from a very large number of countries. We are in a much more advantageous position to translate 2.0 into a deeper relationship,” he added.
Jaishankar pointed out that the United States will need India in various areas, especially in emerging and critical technologies. He reiterated the importance of both countries building a mutual understanding of benefits in these sectors, and called for a deeper partnership. “We need to build an understanding in areas like technology leadership. India has a lot to offer as a trusted partner,” Jaishankar said.
On the topic of free trade agreements (FTAs), Jaishankar discussed India’s negotiations with the European Union (EU) and the United Kingdom. He acknowledged the complexity of these agreements, particularly with the EU, given the diverse interests of its member countries.
“In the case of the EU, there are multiple members. So everybody has their interest. How to harmonize that is a challenge, but overall we believe it will benefit us,” Jaishankar said. He expressed optimism that a successful free trade deal with the EU would significantly enhance India’s market access to European countries, which he described as “predictable and stable markets.”
Jaishankar also emphasized the importance of India’s manufacturing sector, particularly the role of Micro, Small, and Medium Enterprises (MSMEs). He stressed that the Modi government has prioritized the creation of more manufacturing zones and improving India’s logistics and competitiveness.
“We have to create more manufacturing zones, improve logistics, and make ourselves more competitive. I think we have made progress, but there’s still a lot to be done,” he said.
The External Affairs Minister acknowledged the challenges MSMEs face, including unfair competition, especially in the context of FTAs. He pointed out that the government is taking steps to protect their interests, notably through a review of the Free Trade Agreement with ASEAN, which has had negative impacts on India’s agriculture and MSMEs.
“The government has been careful in this regard,” Jaishankar said, reinforcing the need to balance global trade engagements with domestic economic concerns.
Jaishankar also reflected on how the global perception of India has changed significantly over the past decade. He pointed to the back-to-back electoral victories of Prime Minister Narendra Modi’s government as a clear signal of India’s rising influence and credibility on the world stage.
“The third back-to-back term of the Modi government has impressed most nations and political leaders of the world,” he said.
