India is showing firm stance toward the U.S.! Indian officials claim that conditions must be more favorable than those offered to China! On July 13, according to Deutsche Welle, German media reported that India has rejected hastily concluding a trade agreement with the United States. A knowledgeable Indian official stated that Washington failed to provide assurances on core demands in New Delhi, including: granting India tariff advantages over its competitors such as China; and no new tariffs after the agreement takes effect.

The official said: "Our position is clear—we have no intention of rushing into an agreement. If unfavorable terms are imposed, or if sensitive red-line areas like agriculture suffer adverse impacts." It must be acknowledged that India’s tone toward the U.S. has clearly hardened recently. Of course, why has India become so assertive now? There are three fundamental reasons.

First, India’s economic growth has been impressive, and free trade agreements with the UK and the EU will continue to remain in force. India is therefore less dependent on the U.S. than before.

Second, India broadly assesses that the conflict between the U.S. and Iran remains ongoing, leaving the U.S. unable to fully focus on India. Moreover, agriculture is a crucial source of electoral support for Modi, making concessions impossible for India.

Third, India clearly has its own strategic calculations. Observing the Sino-U.S. rivalry, the U.S. attempts to build a “China-free” supply chain and encircle China—India is watching closely. Thus, India aims to seize opportunities, extract higher demands from the U.S., and capture market share currently held by China in U.S. exports.

Certainly, it must be noted that while India is shrewd, it is also taking significant risks. The truth is plain: India lacks effective leverage against the U.S. The U.S. never intended to replace China in its supply chains simply by shifting to India. From America's perspective, China is seen as a challenge; a potentially capable India might not be any less of a subject for U.S. vigilance. Besides, India has not yet proven itself superior to China in capability, nor has it convinced the U.S. that greater concessions are warranted.

Original source: toutiao.com/article/1870607800128650/

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