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  • 11 months ago
This special report focuses on India's diplomatic and economic strategy for handling former US President Donald Trump, particularly concerning a potential trade deal, US tariffs, and India's purchase of Russian oil. The debate, featuring former diplomat KC Singh and economist Rahul Ahluwalia, explores whether India should adopt a confrontational approach like China or a more appeasing one. Former diplomat KC Singh stated, 'And if you think that you can appease him, it's not going to work because that is not the way the Chinese are dealing with him'. The discussion delves into past diplomatic incidents, such as Prime Minister Modi's decision to skip the Sharm el-Sheikh summit, and contrasts China's use of rare earths as leverage with India's own economic and strategic interests. The programme analyses the complex balance India must strike between securing a vital trade partnership with the US and maintaining its strategic autonomy on the global stage.

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00:00India needs to, in a way, provide perhaps Donald Trump some room, some room to wriggle out of the
00:06tariff issue so that a trade deal is cemented next month. Diplomatically, India has been very
00:11careful not to challenge Donald Trump beyond the point. The MEA claimed there was no conversation
00:17between Prime Minister Modi and President Trump. But beyond that, they haven't really taken on
00:22Donald Trump at any time. Even when his advisor spoke of India being a dead economy, we were very
00:27quiet. Is that strategy, in your view, working slowly but surely? Even today, when he speaks
00:33about Russian oil, is there a toning down, as Ashok Malik seems to suggest?
00:39Look, Rajdeep, I don't think you can deal with issues, oil, etc., in separation, because you're
00:45dealing with Trump as a whole entity. And for him, the whole Russian oil issue is linked to Ukraine.
00:52And he feels that the Ukraine, and he has said it, India is keeping the Ukraine war going,
00:58Now, the problem is that there are two ways to deal with Trump. One is the way the Europeans have
01:03done it, the way the most of the world is doing it. Just stand there, be embarrassed by Trump,
01:08but largely don't take him on. You can privately do what you want, and publicly you can adopt whatever
01:13policy, but don't confront him. The other one is the Chinese matter. The Chinese had cut a deal
01:18with them, and now they've gone back on that deal. And they're back again to rare earths, and Americans
01:24are facing a problem there. Probably that's one of the elements that might help India.
01:29Now, the problem in dealing with Trump is that he publicly embarrasses you, but then we also make
01:34mistakes. When ambassador-designate Gore was here, never diplomatically, never ever, an ambassador-designate
01:43is received by a head of government. Now, Prime Minister met him, took a painting from him,
01:49signed by Trump. Whatever he discussed with him, Gore would have gone and told Trump. Now,
01:55when Trump says, I've been told, it doesn't mean he's been told directly by Prime Minister.
01:59Maybe that's what Gore went and told him. So, when you start breaking conventions, you think you can
02:04please Trump and get across to him, then you'll always have a mix-up. I think with Trump,
02:08you have to have a very straightforward way of dealing with him. Russia is, a relationship with
02:14Russia is more than just oil. You know, we have a defense relationship. Tomorrow, you can have
02:19instability in the Gulf, and the oil supplies can seize. Iran is not part of the Sharm al-Sheikh
02:25meeting. So, the Israelis are not about to stop. They're still going after Iran. So, it's a region
02:30from which we are getting oil, which is very unstable, and it can get destabilized very rapidly.
02:36Therefore, you need a diversity of relationships, which are necessary for defense equipment,
02:43which are necessary for oil, energy, gas, and so on and so forth. So, and also, it is necessary for
02:49your international image. Because the whole world is watching, the smaller countries, global south,
02:54they're watching who is able to stand up to Trump. Now, it doesn't mean you fight with him. But the
03:00Chinese are getting that leadership. The Chinese are the ones who will be seen as the other power,
03:04which can stand up to the Americans. Now, if we go on getting embarrassed, and then we have to
03:10publicly have the spokesman of the MEA sort of wriggle out of it, then this will continue. This
03:16will not stop. Look at the importance. Prime Minister didn't go to Sharm al-Sheikh. Why? Because look at
03:22the importance given to the Pakistani Prime Minister. And there was a danger that Trump may just call
03:26Prime Minister Modi and say, come on, shake hands with the Prime Minister Sharif. You're dealing with,
03:32you can keep saying in public. So, he did the right thing. No, no, let's be clear, Casey Singh,
03:36the Prime Minister, you know, no, no, let me intervene then. The Prime Minister did not go to
03:41Sharm al-Sheikh. On hindsight, it was probably the right thing to do. Absolutely. I mean, you don't want
03:45to be part of some Trump love fest, surely. Absolutely. But then keep that message consistent.
03:51You don't receive an ambassador designate and take a painting from him. God knows what he goes and
03:56tells Trump. And then Trump will just, he has a stream of consciousness. You give him a mic,
04:02he'll say whatever occurs to him. Whether it embarrasses you, it doesn't embarrass you,
04:06it's happened time and again. And I think you have to choose how to deal with Trump.
04:10And if you think that you can appease him, it's not going to work because that is not the way
04:17the Chinese are dealing with him. Okay. Okay. I've got your point. You've made that China point.
04:25I want to take that to you, Rahul Aluwalya. The Chinese are using, for example, you know,
04:30they're using, yes, William, you, you, let me get an intervention. William Buter, you wanted to intervene.
04:37I heard you. Go ahead. No, it's just important to recognize that these negotiations are not just
04:43about the Russian 25 percent. They're about the whole 50 percent. And meaningful trade negotiations
04:50will have to continue even after India, if they were to do so, discontinuous oil imports from Russia.
04:59There would have to be concessions on tariff barriers and on non-tariff barriers. So this is not just Russia we're talking about.
05:09So why is Trump again raising Russia again and again is the question. Is he using Russia as a bargaining chip
05:23to push India to the wall? And should India stand up, Rahul, as is being suggested by Casey Singh,
05:29we shouldn't be seen to be bullied by Trump. Instead, rather than go overboard in any way,
05:35we've got to stand up. The Chinese have done so and have done reasonably successful. But the Chinese
05:40have rare earths. They have weapons available. They are a much larger economy. So they can stand
05:45up to Donald Trump. Can India do so really? Can we really stand up to Trump? Or do we need to really
05:51work carefully to negotiate a win-win trade deal?
05:55I mean, first of all, China's success is very qualified. They've just had 100 percent tariffs
06:01announced against them. And by and large, this whole thing was set off by China. So I would not
06:06qualify China's strategy as a success by... But they're not concerned about it. The Chinese don't
06:12seem as of now, Rahul, just to intervene, the Chinese don't seem as concerned about it. They seem
06:17to be willing to look at Donald Trump in the eye. If they're not, that's a mistake. The Chinese economy
06:22is extremely fragile. They've been in situations of overproduction for almost five or six years now.
06:29Their real estate sector is in massive crisis. If I were the Chinese, I would be very worried no
06:35matter what brave front I'm trying to put up to the rest of the world. So I mean, I wouldn't...
06:39I would not at all say that we should copy China in any way, shape or form at all. But that doesn't
06:47mean that we give up self-respect or anything of the sort. We should just not view it in those terms.
06:53We should view it... We should not take Trump on his terms. Why are we trying to meet Trump on his
06:59terms? Our strategic interest should be of primal importance to us, right? And our strategic
07:07interests lie in securing a large market with the USA. Our strategic interests lie in lowering our
07:14own trade barriers so that our economy becomes more competitive, so that our economy becomes more
07:20efficient and grows. It is in our interest to lower trade barriers. We should always remember that.
07:26We should reform our economy in such a way that we don't need trade barriers to hide behind.
07:31Our agriculture sector has been crying out for reform for decades. We could use this as a reason
07:39to reform our agricultural subsidies. It doesn't mean we stop agricultural subsidies. We should protect
07:45our farmers. We should protect the people who need protection. We should not protect particular types
07:52of crops. We should not protect particular types of fertilizers. We should not protect particular
07:58types of water withdrawal methods. This is just inefficient. It hurts us. It hurts our environment.
08:05It hurts our farmers. It hurts our long-term strategic interest. This is an opportunity to do something
08:11about it. And we should look at it in those terms, not in the terms of are we winning or losing
08:15against Trump. That's a mistake.
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