India-Russia Defence Pact & Dollar Pivot—How Will Washington Respond?

Image Source: Institute for Security and Development Policy

U.S. Commerce Secretary Howard Lutnick has voiced worries over India's long-term defence purchases from Russia and its positioning against the U.S. dollar, noting that these actions have traditionally "rubbed the U.S. the wrong way." Still, he agreed that India is now tackling these issues which will help to strengthen bilateral ties.

Main Points:

- India's desire for Russian military gear has been a sticking point in U.S.-India relations; nevertheless, New Delhi is steadily moving toward U.S. defence acquisitions.
India's involvement in BRICS, which encourages alternatives to the dollar, has Washington worried about dollar hegemony debate.
Lutnick indicated a possible near-future India-U.S. trade pact, therefore indicating better diplomatic ties.
- Direct Interaction: He complimented India's honest approach in responding to U.S. concerns, noting that honest conversation is improving relationships.
- The change toward U.S. defence alliances and financial collaboration should help India's world standing.

Notwithstanding historical hostilities, India and the U.S. are heading towards a more cooperative future, with defence alliances and trade talks helping to define diplomatic relations.

Sources: Moneycontrol, Economic Times, MSN News