After the optics, no trade deal

Trump returns empty handed, but for an arms contract that will benefit US cos

After the mesmerising optics in Ahmedabad and Agra, India and the United States could not hammer out any big trade deal.

Seemingly, the breakthrough did not happen because Donald Trump’s dictum is "America first" and PM Modi’s maxim is "Make in India."So, the visit turned out to be big on photo opportunities but short on substance; no deal was finalised except for the US coaxing India into buying American defence equipment, including choppers.

Nonetheless, PM Modi talked of tremendous progress towards a comprehensive agreement and claimed both sides "have agreed to start negotiating for a big trade deal." But, for all intents and purposes, the deal remains in the pipeline.

Foreign secretary Harsh Vardhan Shringla claimed the mega trade deal was discussed but he fumbled when asked to give specifics of the deal. The absence of a trade deal between the world's biggest economy and the most populous nation showed that behind the bonhomie, they remain far apart. Trump had hinted as much in Ahmedabad when he described Modi as a "very, very tough" negotiator.India did raise the issue of tariffs slapped by the US on Indian steel and aluminium and suspension of the duty free access of certain Indian goods, but there was no response from Trump as he is more concerned about the $25-billion US trade deficit with India.

Trump is under pressure to deliver the deal before the US Presidential election in November and hence he tried his best to secure a greater access to the vast Indian market of 1.3 billion people for US dairy products, medical goods and HarleyDavidson motorcycles.The only agreement the two sides could reach was on $3 billion in defence deals, including helicopters for the Indian Army and Navy that is seen as a strategic alliance to counter the rise of China in the region. The US, however, offered to buy nothing from India, agreeing only to further negotiations.