Minhaj Merchant's column: Good opportunity for India to explore new options

Modi's meetings with Xi Jinping and Putin at the SCO summit symbolise a new phase in India's global development. As The Economist in Britain – otherwise a harsh critic of India and Modi – has admitted in its latest issue, the isolation of India by the US is a grave mistake. In such a situation, this is a moment of opportunity for India. It is also a decisive test of what kind of superpower India will become. On the other hand, Trump has failed 25 years of American diplomacy. The US had imposed a 50% tariff on exports to punish us, but it could prove to be a boon for us. This will prompt our export companies to seek other markets, including Japan, the Middle East, South America and Southeast Asia. Yes, this will cause short-term trouble for small and medium enterprises dependent on the US market, but tariff rates are likely to come down significantly after negotiations at the official level. However, it may take a few months. The India-US relationship is based not only on trade but also on many other issues such as defence, maritime security and technology. In the wake of Modi-Xi and Modi-Putin's meetings in China, the US embassy posted on September 1 that the partnership between the US and India is reaching new heights, it is a defining relationship of the 21st century. US Secretary of State Marco Rubio said soon after, "The enduring friendship between the people of the two countries is the foundation of our cooperation and keeps us moving forward as we recognize the immense potential of our economic relationship." After Operation Sindoor, Pakistan had tried to get its name to be included in international discussions with India, but it has found itself in the category of Cambodia with 19% tariff. Asim Munir made a mockery of Pakistan's establishment by forcing Shahbaz Sharif to declare him as Field Marshal despite Pakistan's humiliating defeat in the war. The Economist, on the other hand, described Trump's 50% tariff on India as a blunder. In the US itself, opposition against Trump is increasing on two issues. First, Trump's dismissal of top institutional leaders, including Lisa Cook, the first black governor of the US Federal Reserve. Cook sued Trump last week for "unwarranted dismissal." Second, the decision to deploy law enforcement agencies under the federal authorities of the armed National Guard in Washington DC has also sparked outrage in the capital. But for India, it's time to look ahead. Countries like Australia are keen to build trade relations with India. Australian Trade Minister Don Farrell recently said that he sees India as a country full of great opportunities. Rejecting Trump's "rationale" of punitive tariffs on India, he announced that Australia was keen to increase its investments in India. Australia is fortunate in terms of important minerals and rare earth elements. It has the world's largest or second largest reserves of important minerals and rare earth elements. U.S. officials have privately said that if India stops importing Russian oil, a 50% tariff will be lifted. Reacting to this, Indian officials have said that instead of reducing imports of Russian oil, India is instead increasing it by 30% to 2 million barrels per day. Also, India is using more than 50 countries to diversify its export market. The days of India's dependence on the US for nearly 25% of India's goods exports are over now. A broader global basket will reduce risk and reduce India's dependence on any one country. Making an encouraging assessment of India's prospects, Reliance Industries Chairman Mukesh Ambani on Friday announced at the company's annual general meeting that India's economy has the potential to grow at 10 per cent annually. A few hours later, the Finance Ministry revealed that our economy has exceeded the estimate of 7.8% growth in the April-June 2025 quarter. India is using more than 50 countries to diversify its export market. The days of relying on the US for about 25% of goods exports are over now. A broader global basket will reduce risk. (This is the author's opinion)