This week saw India decline a swift trade deal with the US, Prime Minister Modi embark on a significant global tour, renewed tensions in the Ukraine war, and a glimmer of hope for a ceasefire in Gaza.
India Puts Trade Deal on Hold
India chose not to sign a trade deal with the United States by the July 9 deadline, citing “deadline pressure.” Officials stated that New Delhi remains open to a mutually beneficial agreement, emphasizing that “all possibilities are open” for future discussions.
Negotiations have focused on reciprocal tariffs imposed in April. India is keen on securing sustained access for labor-intensive goods like textiles and footwear, alongside auto component and steel exports. However, politically sensitive sectors such as agriculture and dairy have proven to be major sticking points.
India maintains “red lines” on agriculture and dairy, largely due to concerns over supporting 80 million local dairy farmers and potential issues with foreign genetically modified (GM) products. Similarly, imports of GM corn and soybeans are met with resistance from domestic industries.
The US, conversely, is pushing for broader market access in India for everything from automobiles and whisky to agricultural goods like apples and dairy. The US Department of Agriculture predicts India’s rising consumption of animal products will boost demand for feed, creating export opportunities for American corn and soybeans by the early 2030s.
Despite the current stalemate, both nations remain committed to significantly boosting their bilateral trade, aiming to reach $500 billion by 2030. Areas like diversifying oil and defense procurement are seen as strategic interests where India can bridge the trade gap, alongside potential concessions on some industrial goods and agricultural products where domestic supply gaps exist.
PM Modi’s Diplomatic Push
Prime Minister Narendra Modi recently concluded a five-nation tour, reinforcing India’s global diplomatic presence. During his visit to Trinidad and Tobago, the two countries signed six agreements and reaffirmed the critical need for comprehensive UN reforms, including expanding the UN Security Council, with Trinidad and Tobago supporting India’s permanent membership.
Modi also visited Ghana, where he received the national award, ‘The Officer of the Order of the Star of Ghana,’ for his influential global leadership. Four Memorandums of Understanding were signed, elevating India-Ghana ties to a Comprehensive Partnership. The tour also included stops in Argentina, the BRICS Summit in Brazil, and Namibia.
Ukraine War Intensifies
The conflict in Ukraine saw a significant escalation with Russia launching its largest aerial assault to date, deploying a record 539 drones and 11 missiles against Kyiv. Reports from Dutch and German intelligence agencies also suggest a “normalised, standardised, and widespread” use of chemical weapons by Russia, including chloropicrin.
US President Donald Trump voiced his frustration over Russian President Vladimir Putin’s failure to end the fighting, stating, “He wants to go all the way, just keep killing people – it’s no good.” Trump has previously expressed a different stance on Ukraine’s NATO membership and halted some military aid.
Gaza Ceasefire Hopes Rise
Amid ongoing violence, a potential ceasefire in Gaza appears closer. Hamas has indicated it is “ready to start talks immediately” on a US-proposed 60-day ceasefire. US President Trump, mediating the deal with Egypt and Qatar, suggested a final agreement could be reached by next week.
The situation on the ground remains dire, with reports of at least 50 Palestinians killed while waiting for food aid in Gaza. The UN has criticized certain aid distribution efforts for bypassing established systems and violating humanitarian impartiality rules. Since October 2023, Gaza’s Health Ministry reports over 57,000 killed and 135,000 wounded.
- India prioritized long-term trade benefits over a deadline-driven deal with the US.
- PM Modi garnered international support for UN Security Council reforms during his multi-nation tour.
- Russia’s use of drones and alleged chemical weapons marks an escalation in the Ukraine conflict.
- Hamas’s positive response to a US-backed ceasefire proposal offers a glimmer of hope for Gaza.
These global developments underscore a week of complex diplomatic maneuvering, escalating conflicts, and cautious optimism for peace.
