Is Trump's Criticism of India's Trade Policies Justified?

New Delhi, Sep 1 (NationPress) While US President Donald Trump has publicly criticized India’s trade practices in a post on Truth Social, labeling the economic ties between the two nations as "completely one-sided", the reality is that India has significantly increased its purchases of oil and gas from the United States in line with New Delhi’s commitment to diminish the trade deficit.

Trump stated, "What few people realize is that we conduct minimal business with India, yet they engage in a substantial amount with us. In essence, they are our largest supplier, but we export very little to them."

While the US President pointed out India’s ongoing dependency on Russia for energy and military supplies, he seemingly neglected to acknowledge that India’s imports of oil and gas from the US surged by 51 percent between January and June this year.

Furthermore, despite Trump’s administration, India and the US have taken steps to enhance their defense collaboration. This was confirmed by the Pentagon in a statement released in July.

During a meeting in Washington, Prime Minister Narendra Modi assured President Trump that India would escalate its energy imports from the US to $25 billion by 2025, an increase from $15 billion in 2024, as part of efforts to mitigate the US trade deficit. This commitment has been followed by Indian public sector oil and gas companies engaging in talks for long-term energy purchases from US firms, reinforcing this upward trend.

Data indicates that India’s oil and gas imports from the US have indeed risen by 51 percent from January to June this year, with liquefied natural gas (LNG) imports nearly doubling to $2.46 billion for the financial year 2024-25, up from $1.41 billion in 2023-24.

The Indian Oil Corporation, the nation’s leading oil enterprise, placed orders for around 2 million barrels of oil in August for October delivery, followed by an additional purchase of 5 million barrels of US West Texas Intermediate crude for delivery in October and November, as reported by Reuters from Singapore. Likewise, Bharat Petroleum and Reliance Industries have also been procuring US oil, with recent shipments finalized in August.

Trump also noted India’s defense procurement from Russia in his latest Truth Social post. However, this has never hindered India-US relations, as Washington has recognized these transactions stem from historical geopolitical factors.

Regarding defense ties, Defence Minister Rajnath Singh and his American counterpart, Pete Hegseth, have agreed to establish a 10-year framework to further enhance defense and strategic relations between the two nations.

This decision was included in a Pentagon statement on July 2, following a phone conversation between Singh and Hegseth.

The statement highlighted discussions regarding pending major US defense contracts with India and the necessity for close defense industrial cooperation.

"Secretary Hegseth highlighted the significance the United States places on India as its primary defense ally in South Asia," stated the Pentagon.

The two leaders evaluated the "substantial progress" both nations have made toward achieving the defense objectives outlined in the February 2025 joint statement by President Trump and Prime Minister Modi.

They also touched upon pending major US defense sales and the urgency of close industrial cooperation.

Rajnath Singh urged Hegseth to expedite the delivery of GE F404 engines for the Tejas Light Combat Aircraft, while also advocating for the swift finalization of a proposed agreement between Hindustan Aeronautics Ltd. (HAL) and US defense giant GE Aerospace for joint production of F414 jet engines in India.

In their February meeting, Prime Minister Modi and President Trump reaffirmed the India-US Comprehensive Global Strategic Partnership, unveiling crucial initiatives in defense, trade, energy, and technology. Highlights include the US-India COMPACT framework, significant defense procurements, and the TRUST initiative focused on AI, semiconductors, and space. Both nations have set an ambitious $500 billion trade target by 2030, underscoring their commitment to economic and industrial cooperation.

Additionally, Trump seems to have overlooked the structural dynamics of trade, as India is a major supplier of generic medicines to US consumers at affordable prices, helping to keep medical expenses manageable.

India’s rapidly expanding commercial airlines also represent a significant customer base for US manufacturer Boeing, which is facing increasing competition from Europe’s Airbus.