US-India Sign 10-Year Defence Pact Amid Diplomatic Tensions

US-India Defence Deal Faces Economic and Diplomatic Hurdles
US-India Sign 10-Year Defence Pact Amid Diplomatic Tensions
Staff Sgt. Madelyn Keech
Updated on
3 min read

The United States and India have signed a landmark 10-year defence framework agreement, a move officially described as a cornerstone for regional stability. However, this new pact comes at a time of significant diplomatic and economic friction between the two nations, raising questions about the true depth and sustainability of their "strategic alignment" amid contentious US policies on trade and immigration that directly impact India.

A "Consequential" Agreement

The defence framework was signed in Kuala Lumpur by US Defence Secretary Pete Hegseth and Indian Defence Minister Rajnath Singh on the sidelines of the ASEAN Defence Ministers' Meeting-Plus . Officially, the agreement is designed to provide a unified policy direction for the next decade, enhancing coordination, information sharing, and technological cooperation to transform the defence partnership . Both leaders hailed the pact on social media, with Hegseth calling it a "cornerstone for regional stability and deterrence" and Singh stating it signals a "growing strategic convergence" critical for a "free, open and rules-based Indo-Pacific region".

Despite the positive official statements, the agreement was finalized against a backdrop of strained ties. The meeting itself was almost derailed, as a planned August visit by Minister Singh was postponed following the Trump administration's decision to impose 50% tariffs on Indian goods, including a specific 25% penalty for India's continued purchases of Russian oil and arms.

Coercion

The new defence pact is juxtaposed with a series of aggressive US economic measures that have placed immense pressure on India. The relationship had "plummeted" in August after the Trump administration raised tariffs to 50%, with US officials accusing India of fuelling Russia's war in Ukraine by buying discounted Russian oil . This tactic is not unique to India; one analysis notes that Washington has taken a similarly tough line with Canada, Mexico, and NATO partners, suggesting India is not being singled out but is instead facing a consistent, transactional US approach .

Further escalating tensions, the US recently added a one-time $100,000 fee for H-1B skilled worker visas, a program upon which India accounts for about 70% of all recipients . This policy, part of a broader crackdown on legal immigration, has been criticized for potentially forcing US firms to offshore operations to countries like India and Canada, ultimately harming US competitiveness and innovation . These moves have sowed doubt and defiance in India, with some experts and students now looking to opportunities in other countries like Singapore, Japan, and China, questioning the stability and value of pursuing a future in the US .

A Partnership

Beneath the surface of this new defence agreement lies a deep erosion of trust. Analysts note that President Trump's public claims of having facilitated the India-Pakistan ceasefire are a "torment" to Prime Minister Modi and are seen as a deliberate point of "glee, and leverage" for the US president . This behaviour fits a pattern of using personal slights and taunts as political tools, undermining the mutual respect traditionally foundational to strong alliances.

While the defence agreement pushes forward, the context of tariffs and visa fees creates a contradictory picture. The partnership appears less built on shared democratic values and more on a transactional calculation, with the US using economic pressure to force India to fall in line on issues like Russian oil imports . This approach risks long-term damage, as it reinforces the doubts of those in India who have always questioned the reliability of the United States as a dependable defence partner.

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