With China facing strategic isolation and Western powers looking for stability, India is no longer the rising power, it is the anchor powerread moreIn the constantly shifting tectonics of global trade, few moments stand out as true inflection points. The recent decision by the United States to pause certain tariffs for 90 days while simultaneously escalating duties on Chinese imports to as high as 125%, is one such moment. While this pause reflects tactical recalibration, it also reveals a deeper strategic intent to realign trade priorities, challenge China’s dominance in supply chains, and embrace more reliable allies. For India, this presents not just a challenge but a once-in-a-generation opportunity one that the Modi government is uniquely equipped to leverage.AdvertisementGlobal stage is shiftingThe current US-China trade standoff has its roots in years of strained commercial ties, alleged intellectual property theft and geopolitical divergence. With Washington increasingly sceptical of Chinese intent and reliability, the Biden-Trump continuum has seen a consistent theme: tariffs, tariffs and more tariffs. But this time, the playbook is broader. It’s not just about penalizing China; it’s about de-risking global supply chains and embracing trustworthy allies. Treasury Secretary Scott Bessent’s recent remarks hint at this broader pivot: “We believe that fair tariff arrangements with trusted partners like India, Japan, South Korea and Vietnam are not only possible but essential.” This signals the clear strategic space India now occupies not merely as an alternative to China but as a preferred, permanent trade partner in the emerging global order.More from India
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‘Trump tariffs offer an opportunity’: Piyush Goyal says India-US bilateral trade deal by fallIndia’s resilience was built for this momentUnlike many nations that are now scrambling to reorient their economies in the face of shifting U.S. policies, India has been future-facing for nearly a decade. Under the visionary leadership of Prime Minister Narendra Modi, India has anticipated the world’s drift toward regionalization, digitalization and economic nationalism. Whether it’s the Production Linked Incentive (PLI) schemes, Gati Shakti infrastructure upgrades or the relentless focus on Ease of Doing Business, the Indian government has been preparing not for today but for a world where India is central to global commerce. In recent years, India has signed or pursued bilateral trade agreements with the UK, EU, UAE, Australia and several Southeast Asian nations. It has strategically diversified exports, scaled domestic manufacturing and positioned itself as a resilient, rules-based economy with unmatched democratic stability. “While others are reacting to a changing world, we’ve already realigned.”The 90-Day pause: A window India must walk throughThe US‘ 90-day pause on certain tariffs offers India a diplomatic and economic opening. During this window, New Delhi has the opportunity to proactively engage Washington on a comprehensive, bilateral trade framework. Such a pact could insulate Indian industries from future shocks while unlocking a new chapter of economic partnership between the world’s two largest democracies.Three key areas should guide India’s approach:Market access and tariff clarity: India must push for reduced duties on sectors like textiles, engineering goods, pharmaceuticals and electronics. With the US seeking non-Chinese sourcing partners, India is poised to become the default destination for several global supply chains.Technology and investment collaboration: India can position itself as a digital ally, offering data security, software excellence and scalable cloud infrastructure. The Modi government’s thrust on Digital Public Infrastructure (DPI) has already created a replicable global model.Defence and strategic integration: Strengthening defence cooperation can pave the way for smoother economic alignment. Strategic trust often opens trade doors and India has been one of the most reliable security partners for the U.S. in the Indo-Pacific region.“This is not about replacing China. It’s about reshaping the global order and India has a moral and economic claim to lead that change”.Tariffs are a trigger, not a threatLet’s be clear: India has faced its own tariff heat in recent weeks. The 26 per cent duty the US briefly imposed on Indian exports had the potential to dent growth. But here again, the Modi government’s response was calibrated, not chaotic. There was no retaliation, no rhetoric, just resilient policymaking. With inflation under control, the Reserve Bank of India cut the repo rate by 25 basis points, supporting liquidity and sending a signal to industries and investors alike: India is open for business. This synchrony between fiscal diplomacy and monetary action shows the depth of India’s economic toolkit and it is a direct result of modular reforms, stable leadership and disciplined governance the hallmarks of the Modi administration.AdvertisementA prime ministerial vision that transcends crisisWhat stands out in this evolving narrative is not just India’s resilience, but Modi’s foresight. He didn’t wait for the world to shift, he began preparing India for its new global role years ago. From championing “Make in India” long before supply chain security became a buzzword, to pushing for FTAs while others clung to trade protectionism, Prime Minister Narendra Modi has led with clarity and courage. “The world is catching up to a vision India embraced a decade ago.”Not just a pause, a pivotThe 90-day pause on US tariffs is not a breather, it’s a pivot point. The global trade canvas is being redrawn, and India has the brush in hand. Now is the moment to ink a new trade chapter, one built on mutual respect, strategic alignment and long-term prosperity. With China facing strategic isolation and Western powers looking for stability, India is no longer the rising power, it is the anchor power. Under Prime Minister Modi’s leadership, India is not waiting for opportunities, it is creating them..AdvertisementThe author is founder of AU Corporate Advisory and Legal Services (AUCL). Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.TagsChinaDonald TrumpNarendra ModiUnited States of AmericaXi JinpingEnd of Article

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India at the crossroads: Seizing opportunity amid US-China trade recalibration