Deep Cracks in India–US Relations, Major Blow to Modi Govt.

The Financial Times has reported on a growing chill in relations between India and the United States, suggesting that these deteriorating ties have directly affected India’s most powerful billionaires. The report indicates that the Modi government’s pro-Hindutva policies and a foreign policy perceived as inconsistent have strained relations with Washington.

According to the report, personal connections and extensive lobbying have failed to sway U.S. legal and trade priorities. One Indian tycoon reportedly failed to build trade ties despite spending millions on lobbying firms, while the persistence of legal cases against Gautam Adani highlights a limits to such influence. Experts suggest that America is no longer viewed as an ally that can be relied upon to manage regional affairs, especially following a public “war of words.”

Further complicating the relationship, Prime Minister Modi and President Trump have remained out of touch regarding ongoing tariff disputes. The U.S. has shown a notable shift in regional focus, with reports indicating Trump has moved closer to Pakistan, even hosting high-level Pakistani leadership at the White House while trade negotiations with India stalled.¹ Experts warn that India may face severe economic and legal pressure if these disagreements persist.

The U.S. has expressed clear discontent over India’s continued Russian oil imports, with reports noting that groups like Mukesh Ambani’s have made billions in profits from refining Russian crude.² This has led to the imposition of a 50% tariff on Indian products, signaling that Washington no longer accepts India’s claim of strategic autonomy.³ While India was once viewed as a critical partner against China, its recent behavior and regional tensions have deepened U.S. suspicions about India’s long-term alignment.