OpinionTrump’s setback, India’s tightrope

Trump’s setback, India’s tightrope

America finally woke up. A bluenami, as Democrat tsunami termed, hit for ushering in a change during the mid-term Congress elections of Senate and House of Representatives. An election it indeed was. Democrats replaced Republican, the party President Donald Trump belongs, at places where they never could do it.
The Congress changes hands through paper ballots, even as India struggles to establish confidence in electoral transparency amid EVM-related concerns and the uncertainty surrounding the SIR exercise. Except those Indian peculiarities there were many similarities in the elections. The ground conditions of the US matched that of India. The US cared for the cost of sandwich and India its pavbhaji/pakora. Indians are paying 40 percent more for snack. The Americans are also paying more for food and provisions. The cost matters for the people. Either he pays more or he starves.
India can take satisfaction that 28 persons of Indian origin have gone to Congress. Would that change American diplomacy? Or its approach to India? Possibly not much. They are of Indian origin but American citizens. American interests are prime for them Trump or not.
The re-election of Indian-origin lawmakers, including Ami Bera, Ro Khanna, Pramila Jayapal and Suhas Subramanyam, strengthens their political representation in Washington but more symbolic for India itself. Blacks, Latina, US natives victories may make America more inclusive.
Those who are in a dreamland expecting a better, softer treatment from the new regime or a free Russian oil, yet to surpass Trump’s veto regime, could be in for a shock. In a changed scenario, they could expect renegotiations. It depends on India how it could extract the best.
A Relief?
America has usually taken care of its citizens with affordable cost, a matching salary for an easy, even if not comfortable, life. Trump’s crazy brash politics changed that with wars, high petrol cost, cruel kidnapping of Venezuelan President for stealing his petroleum to minerals at many other places for American interest.
The mid-term elections clarified that the American people do not support that. Their will prevailed and Indians take a sigh of relief as international fuel prices slumped. Americans and Indians breathe with a bit of ease.
The American elections come to the rescue of the crashing Indian stock markets as well. Six sessions see the stocks surging in India. It could be a short bonanza. Union Minister for Panchayati Raj, Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh (also known as Lalan Singh), announces that elector’s photo identity cards (EPIC/voter ID) combined with biometric authentication—rather than universal Aadhaar—will be used to identify beneficiaries and process payments for welfare schemes. As crores of names are deleted from electoral list, many would be deprived of the benefits. The simple logic – vote gone, rights gone and duties prevented!
It could recoil on the economy apart causing social unhappiness. Would the stocks still continue to rise? None knows. Troubles that Americans have overcome, could go deeper for Indians.
The corporate world itself is shaky, if not in turmoil, The governance battle of the Tatas, began inhouse, enmeshing into a tinge of wider politics may have deeper consequences.
The IDBI sale is no less a concern. An orderly house, now disturbed, could make a lot of change.
The pre-Diwali stock run would have positive consequences if post-Diwali stock prices and foreign portfolio investments maintain the flow.
India certainly needs a better treatment from the US be it tariffs, technology or trade terms. America benefited immensely from the rush of Indian talent to the US. Now it expects favourable congressional oversight for disentangling about 300,000 workers and student visa. It’s too early to say whether the Democrats would roll it back. Some better chances are not unlikely, but overall immigration remains a sensitive issue. Legislative review by Democrats may delay the proposed India–US Free Trade Agreement over labour and environmental standards.
With Democrats taking control of both chambers, executive decision-making faces stronger checks, signalling a transition toward multilateral dialogue and structured negotiations between New Delhi and Washington. A delayed deal would be better than no deal at all. The US itself being in a political melee, India has to wait.
Genocide
Gaza’s devastation also weighed on American opinion. Bombed hospitals and schools, children buried under rubble, the killing of Iran’s President Khamenei, attacks on Lebanon and Houthi skirmishes have shocked the world. Trump’s call to televise an execution live further fuelled concerns over his judgement. The vote reflected public unease with cruelty and militarism. Americans had once forced their government to end the napalm bombing of Vietnam; their aversion to war and jingoism has a long history.
Not that Indians have any love for jingoism, that heaps economic, social and military costs, but the people succumb to narratives of nationalism and patriotic sentiments forcing them to remain quiet. Manipur continues to burn.
Ethnic killings are routine since May 3, 2023. It has caused many civilian protests but the voices are not shrill. Economy and life of the people around Manipur are not same in the North-East. The state mechanism is apparently muted.
The people have not reacted much on calls for better ties with neighbouring countries. Nor they took initiatives to foster relations among sub-continental/ SAARC countries. Americans too could be faulted on their silence against onslaught on Venezuela. These have severe civilisational costs.
The 18th SAARC Summit in Kathmandu (November 2014) saw member states trying to chart a course toward a unified “South Asian Economic Union”. However, rising political friction and cross-border security standoffs between India and Pakistan ultimately froze operations after this period, leading to a decade-long deadlock from which the formal economic framework never fully recovered.
Aspirations Remain
A divided government in Washington could constrain Donald Trump’s domestic agenda, but its implications for India are mixed.
The US election has coincided with a stronger rupee, which opened at a two-week high of Rs94.35 against the dollar, helped by softer crude prices. Investors have also reportedly shifted over $2 billion into Indian equities amid uncertainty over US technology stocks.
Geopolitics from West Asia—the Arab world and Iran—to Ukraine and Europe remains fluid. For India, the challenge is to navigate these shifting power equations while safeguarding its energy security, trade interests and strategic autonomy.
The Democratic victory does not automatically guarantee an early trade deal or relief on Russian oil.
India faces significant risks. India’s energy imports, Russian included, remain under pressure. India has to chart its own course.

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