What benefits will India get from Trump's visit?
Rabi Sankar Bosu
U.S. President Donald Trump and First Lady Melania Trump are welcomed by Indian Prime Minister Narendra Modi after their arrival at the Ahmedabad airport, India, February 24, 2020. /Xinhua

U.S. President Donald Trump and First Lady Melania Trump are welcomed by Indian Prime Minister Narendra Modi after their arrival at the Ahmedabad airport, India, February 24, 2020. /Xinhua

Editor's note: Rabi Sankar Bosu writes about Chinese politics, social and cultural issues, and China-India relations, with special focus on the Belt and Road Initiative. The article reflects the author's opinions and not necessarily the views of CGTN.

U.S. President Donald Trump is on a two-day historic visit to India beginning February 24. Upon Trumps' arrival at the Ahmedabad airport, Indian Prime Minister Narendra Modi welcomed the U.S. president with his trademark hug and said "new history" has been created.

Trump's maiden visit holds a very special meaning for both the populist leaders as they are facing domestic pressures from their citizens on many vexed issues. But the Modi-led Bharatiya Janata Party (BJP) government must answer the million-dollar question: Will the "Namaste Trump" mega-event or the 22-kilometer "monumental" Trump-Modi roadshow under the name "Unity in Diversity" in Ahmedabad, Gujarat, Modi's home state, help reach far "greater heights"? Or will Trump's visit bridge trade disputes between the world's largest economy of 20.9 trillion U.S. dollars and the fifth-largest economy of 2.7 trillion U.S. dollars?

There is no doubt that India-U.S. relationship is one of the most important bilateral relationship for both sides. But judging the conflict of two policies between Trump's "Make America Great Again" and Modi's "Make in India," it can be said that Trump's much-hyped visit will be ultimately limited to a cinematic spectacle only. 

Trump's rhetoric and recent statements from some of his administration officials clearly suggested that the possibility of something great from the Modi-Trump summit will remain low on substance, in particular, when India is expected to get the long-awaited trade agreement in the background of China-U.S. trade conflict for the past several months.

U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands at Motera Stadium in Ahmedabad, India, February 24, 2020. /Xinhua

U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands at Motera Stadium in Ahmedabad, India, February 24, 2020. /Xinhua

But this year is the presidential election year in America. Since becoming U.S. president in January 2017, Trump came to India with a high-level delegation just a little over eight months from the election. It is being viewed that the deal-maker Trump will not take a risk to sign a trade agreement with India at the very end of his term.

Despite his enthusiasm for his first state visit to India as the seventh U.S. president and blossoming bromance with Modi, there is almost no chance of sealing a tremendous trade deal before the November presidential election. On February 18, as he has expressed skepticism, "We can have a trade deal with India, but I'm really saving the big deal for later on."

It should be noted that India faced a protectionist punch from the Trump administration. Given India's alleged trade barriers affecting U.S. exports to Indian market, in the past, Trump brazenly called India the "tariff king."  

As such, on May 30, 2019, the day Modi took his oath of office at the start of his second term, Trump terminated India's designation as a beneficiary nation under the Generalized System of Preferences (GSP), immediately ending zero-duty access for 6.3 billion U.S. dollars of Indian goods, forcing India to open its markets to American goods and services. 

The fact is that last year, just before Modi's visit to the United States in September, the progress of the trade agreement was stalled due to the disproportionate demands by the United States.

Since the exclusion of India from the GSP last year, a new negotiation on trade deal has started between the two countries. India wants the U.S. administration to withdraw tariffs on steel and aluminum imports from India. On the other hand, the U.S. government wants India to lower tariffs on U.S. agricultural products, and medical devices in the Indian market. 

The U.S. side also demand that India withdraw tariffs from multiple products, including dairy, poultry and digital products. But the negotiation between Indian Union Commerce and Industry Minister Piyush Goyal and the U.S. Trade Representative Robert Lighthizer and the prospect of the trade deal totally became elusive as Lighthizer canceled his scheduled visit to India.

Another important point must be noted is that on February 10, the USTR listed India as a "developed economy." As a result, India will be deprived of many privileges including foreign trade benefits allocated only for developing countries. 

Surely, this is a big blow for the Indian "developing economy" which still lags behind the developed world on many social indicators, such as education, health, employment, cleanliness and poverty alleviation. By taking India off the developing countries list just ahead of his visit, Trump broke that tradition.

It is to be understood that Trump's anger has increased since the Modi government signed a deal with Russia to purchase the S-400 missile system. Just last week, U.S. Congress approved the sale of the Integrated Air Defense Weapon System (IADWS) to India. But India has not shown any interest to buy the IADWS worth 1.9 billion U.S. dollars. 

Instead, the Indian Cabinet Committee on Security (CCS) has agreed to buy 24 MH-60 "Romeo" multi-mission choppers worth 2.4 billion U.S. dollars, manufactured by the American arms giant Lockheed Martin for its navy. But it is not sure if buying some military products will appease the Trump administration.

However, despite some disagreements over the trade and deals, a limited trade deal is expected to be signed between the two countries as consolation prize during Trump's 36-hour stay in India. Already, the U.S. president has rubbed salt on Modi's Pakistan mania by stating "our relationship with Pakistan is a very good one" while addressing the "Namaste Trump" event in Ahmedabad. It is hoped that Modi would cherish this "living proof" from his great friend.

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