Beyond the FYP
Washington strains partnership, New Delhi negotiates from strength
Economy & Global Systems English

Washington strains partnership, New Delhi negotiates from strength

TL;DR

A year of US tariffs and visa curbs cooled India-US ties. India answered by holding firm, signing landmark deals with Europe, and building chips and AI at home.

18 Jul 2026
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Introductory Memo


For a generation, the United States was the destination that ambitious Indians, especially students and working professionals, dreamed of. Indian-origin professionals came to lead its biggest technology firms and Indian-American households today report the highest median income of any origin group in the country. That goodwill has been tested over the past year. 

A sequence of decisions out of Washington, a USD 100,000 fee on new H-1B work visas, tariffs that briefly reached 50 per cent on Indian goods, unverified claims about successfully mediating an India-Pakistan crisis and warmer ties with a terror-sponsoring jihadist Pakistan has cooled public sentiment about the US in India. It has unsettled a partnership both sides once called natural. Even as India-US trade talks continue, New Delhi has not simply accepted the terms offered. It has widened its options and doubled down on building at home.




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