By: Sanskriti Singh, Research Analyst, GSDN
India and the United States (US) have had a rocky relationship in the past because of changing governments, global events, and regional needs. The return of Donald J. Trump to the White House in January 2025 marked the start of a new chapter in the relationship between the two countries. With Trump 2.0 once again focusing on the “America First” doctrine, it is important to look at how this administration affects India-US relations in terms of trade, defense, technology, immigration, and people-to-people engagement.
Strategic and Defense Cooperation
The India-US strategic partnership has stayed strong during Donald Trump’s second term. India is still seen as an important partner in the Indo-Pacific for keeping China’s power in check.
In March 2025, joint military exercises like Yudh Abhyas and Malabar were held again, which was a big step forward. These drills not only made it easier for the Indian Armed Forces and the US Armed Forces to work together.
The Trump administration has also given the green light for the sale of high-tech defense gear worth about $3.5 billion, such as MQ-9B Sea Guardian drones and advanced artillery systems. Trump’s transactional foreign policy often looks for clear benefits for both sides. India has skilfully dealt with this by strengthening its role as a net security provider in South Asia.
Trade Relations and Economic Diplomacy
Trade is still a hot topic in the India-US relationship, but it is changing. There were tariff wars and India was kicked out of the Generalized System of Preferences (GSP) during Trump’s first term. Trump 2.0 hasn’t brought back GSP, but trade talks picked up speed after the India-US Trade Dialogue in New Delhi on April 17, 2025.
At this meeting, both sides agreed to work together to fix trade imbalances and make it easier for people to do business in areas like e-commerce, agriculture, and pharmaceuticals. A big result has been the announcement of a $1.2 billion bilateral investment package that will focus on clean energy and infrastructure.
Even with these gains, Trump’s protectionist stance still makes things hard for Indian exporters. His government has also put new tariffs on some steel and aluminium goods, which has hurt India’s manufacturing sector. But the fact that the two economies are becoming more dependent on each other may stop both sides from taking extreme actions.
Technology and Cyber Cooperation
The collaboration in technology, especially in semiconductors, artificial intelligence (AI), and cybersecurity, has become a key part of India-US relations. In February 2025, the two countries launched the US-India Future Tech Partnership during US Secretary of Commerce Gina Raimondo’s visit to Mumbai on February 10, 2025.
This partnership, supported by an US$ 850 million joint innovation fund, aims to improve research collaborations, promote secure digital infrastructure, and address cyber threats from both state and non-state actors. With both nations cautious about technology dependence on China, this partnership strengthens their shared strategic interests.
Additionally, the presence of Indian-origin CEOs in major American tech companies and the ongoing growth of Indian IT firms in Silicon Valley are important factors in solidifying this relationship.
Immigration and Diaspora Engagement
Immigration policy under Trump has been strict. Trump 2.0 has introduced more limits on H-1B visas. These changes start on March 1, 2025. They tighten the eligibility criteria for high-skilled workers, which greatly impacts Indian professionals.
However, Trump has also proposed a merit-based immigration reform bill in June 2025. This bill includes measures for speeding up green cards for highly skilled workers in STEM (Science, Technology, Engineering, and Mathematics) fields. The Indian-American community, which makes up over 75 percent of H-1B visa holders, has welcomed this change cautiously.
Additionally, Trump has increased efforts to connect with the Indian diaspora. He recognizes their political importance in key US states. His participation in the “Namaste America” event in Houston on May 5, 2025, received significant attention. It highlighted cultural ties and the role of Indian-Americans in connecting the two democracies.
Climate Change and Energy Cooperation
Climate policy is still a point of contention. Trump 2.0 has rolled back several environmental regulations, withdrawn from international climate agreements, and promoted fossil fuels. However, energy cooperation with India has continued in practical ways.
In June 2025, India and the United States signed a memorandum of understanding (MoU) for a US$ 500 million joint investment in green hydrogen technology and bioenergy research. While the Trump administration focuses on energy security instead of climate responsibility, India’s climate leadership has led to selective partnerships in clean energy.
The US still exports liquefied natural gas (LNG) and crude oil to India. This helps diversify energy sources. These actions provide economic benefits to the US and support India’s move toward sustainable energy.
Geopolitical Convergence and Divergences
The political landscape of Trump 2.0 has major implications for India. With Washington choosing a more unilateral foreign policy, India’s strategic independence faces both challenges and opportunities.
On one hand, Trump’s confrontational approach toward China gives India more room to strengthen defense and technology partnerships with the US. On the other hand, Trump’s unpredictable stance on global alliances, including strained relationships with NATO and scepticism about the United Nations, creates uncertainty.
Additionally, Trump’s decision to cut aid to several countries, including Pakistan, has received a positive response in New Delhi. His support for India’s role in regional stability, especially in Afghanistan after the US withdrawal, has led to better defense intelligence sharing.
Nonetheless, differences still exist. Trump’s tepid support for multilateral institutions, inconsistent position on Russia, and transactional diplomacy have often limited deeper institutional cooperation.
Human Rights, Democracy, and Value-Based Diplomacy
India-US relations have often been seen as a partnership based on shared democratic values. However, under Trump 2.0, diplomacy focused on values has been overshadowed by strategic and economic interests.
Concerns about human rights, press freedom, and religious freedoms in India have not been addressed as openly during Trump’s administration. This approach has helped avoid public diplomatic tensions, but it has also faced criticism from civil society groups on both sides.
Still, informal talks and visits by parliamentary delegations have kept the lines of communication open. These efforts allow for discussions about concerns without upsetting the overall relationship.
The Road Ahead
As Donald Trump transitions into his second term, the India-us relations possibly are sleek but multifaceted corresponds to a program of resilience. Strategic and defense cooperation are plentiful, especially as tied through Technology and Energy, extreme -come what may – pressure on Economic relations has thus far been progressively constructive.
While immigration and climate issues raise friction between us, both countries seem committed to a dialogue on working through the differences without abandoning the opportunity for bilateral opportunities through Trump’s transactional diplomacy. This said, it is certainly not a cookie-cutter approach, but India as an emerging new global power level, will need to adopt a more independent and assertive, diversified foreign policy.
At the end of the day like the first Trump term, the partnership however, will be based not on ideologies, but on shared interests, strategic need and mutual benefit. These factors will likely only evolve and become salient as more uncertainty defines our global environment. The world seems to need pragmatism, this is likely the basis of enduring partnerships, particularly between India-US partnership.
