India’s worsening ties with US spell diplomatic, economic setbacks for Modi
Islamabad: During US President Donald Trump’s second term in office, relations between India and the United States have deteriorated to their lowest point in recent history. The growing rift has not only led to diplomatic setbacks for the Modi government but has also placed India in a precarious economic position.
According to Kashmir Media Service, The Financial Times, a London-based international publication, has reported that the worsening ties between India and the US had a direct impact on India’s wealthiest billionaires. The Modi government’s Hindutva policies and its inconsistent foreign strategy have severely eroded trust with Washington. The report notes that despite Indian billionaires investing millions of dollars in lobbying firms, their efforts to establish strong trade relations with the US have largely been unsuccessful.
Furthermore, The Financial Times highlighted ongoing legal challenges faced by Modi’s close associate, Gautam Adani, in the US, underscoring that personal connections and heavy lobbying have been unable to sway US legal and economic priorities.
India, once a key ally of the U.S. in managing regional security and strategic affairs, has now lost much of that trust. After the setback in May 2025, Modi’s administration no longer enjoys the same level of U.S. support, especially in matters of regional stability. The tariff dispute between Modi and Trump added to the complexity of the relationship, with the two leaders reportedly engaging in minimal communication. To further complicate matters, The Financial Times reports that President Trump has strengthened his ties with Pakistan, significantly undermining India’s diplomatic standing in the region.
Experts suggest that India now faces heightened economic and legal pressure from the US in the event of further disagreements. Washington’s displeasure with India’s import of Russian oil and the imposition of a 50% tariff on Indian goods clearly indicate that the US is no longer willing to accept India’s so-called strategic autonomy. Experts point to the billion-dollar profits earned by Indian business tycoons like Mukesh Ambani, who have benefited from refining Russian oil, a move that has drawn the ire of US policymakers.
While the US has traditionally considered India as a key partner in countering China’s growing influence, India’s recent actions have raised concerns within Washington. Analysts argue that the escalation of India-Pakistan tensions, coupled with increasing regional instability, has deepened American doubts about India’s role as a reliable ally. These concerns are expected to have significant repercussions for both India’s economy and its foreign policy in the near future.
