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While Quad is a strategic dialogue between the US, India, Australia and Japan, aimed at promoting an independent and open Indo-Pacific, a 14-nation’s attempt to deepen economic cooperation in IPEF Indo-Pacific.
The quad, although not a trade block, plays a strategic role in the coordination of security and economic alignment among member nations. For Washington, both Quad and IPEF are important platforms to combat China’s growing economic and strategic clouts, while supply chains promote flexibility, technical standard-setting and regional integration.
New Delhi’s strategy change is ahead of a quad meeting in India later this year that US President Donald Trump is expected to participate.
A person familiar with the thinking of the Government of India said, “Every sovereign nation has the right to use all available channels to secure the deal that fulfills the interests of the country and its people.” This person said on the condition of anonymity, “For any meaningful partnership, support should be mutually. Unilateral expectations do not work in business talks.”
The move reflects New Delhi’s intention to convert its geopolitical gains into tangible economic gains, an American team on August 25 to visit New Delhi for the sixth round of face-to-face talks for a bilateral trade agreement.
Questions sent to spokespersons of Commerce Ministry, US Embassy in Foreign Affairs, Prime Minister’s Office, New Delhi, and US trade representative spokespersons remained unanswered.
key takeaways
- India can use its quad and IPEF status for trade leverage.
- Geophysical alignment with the US is being used for economic benefits.
- Despite not having a trade block, the strategic role of the quad is being used.
- There is a shadow on Trump’s conversation with the claim of “Tariff King”.
- The US quad can reduce tariffs to keep the process on track.
Additional bargaining power
India is currently facing the highest mutual tariff rate among quad members, with 25% of American duty on its goods and an unspecified punishment for buying Russian oil. Despite describing Japan -Tram as a “historic deal”, the US faced 15% of its duty on its exports, below 25%. Australia will pay 10% duty imposed from April 2.
Despite several diplomatic overlapping and business concessions to skirt the revised American tariff framework, India remains under the US inquiry. Trump, during his first and second terms, branded India as “Tariff King”, a claim that there is a shadow on the ongoing business talks.
“New Delhi has consistently adopted a calibrated approach in trade talks and other agreements. The reduction in duties in the Union Budget, which has reduced the country’s average customs duty rate from 11.65% to 10.66%, shows India’s commitment to promote a more open trade environment.
Experts say that India’s position in Quad and IPEF gives it the power of bargaining in dealing with Washington.
Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), a think tank, said, “India has participated in three of the four pillars of the IPEF, and it should not come under pressure to join the business column. India should stick to its original stand.”
“The foundation of the quad was to raise India to combat China. But if there are differences between quad members, such as high tariffs in India, progress on security cooperation may be limited. There is no possibility of American’s strategic opportunity to risk, which may keep tariffs on India to preserve the quad.”
“According to my understanding, America probably avoids increasing tariffs on India, as it would want to keep the quad process on track and ensure a favorable strategic result for itself,” he said.
‘Inappropriate targeting’
India has called Trump’s latest tariff danger on India to buy Russian oil as “unfair and inappropriate and unfair” targeting. The government said that, like any major economy, India will take all necessary measures to protect its national interests and economic security.
The Ministry of External Affairs said on Monday, “The US continues to import uranium hexfloride for paladium for EVS, fertilizers and chemicals from its nuclear region, Russia.”
The ministry said that India’s Russian oil procurement was inspired by the need to secure cheap and reliable energy after transferring exports by traditional suppliers at the beginning of Ukraine’s struggle. “At that time, the US actively encouraged India’s oil imports from Russia to help stabilize global markets,” he said.
“India is part of the quad-LED projects on new techniques like 5G, AI, quantum computing and biotech, which strengthens its role in US-supported schemes. Its support for IPEF Clean Economy Pillar also matches its climate goals and can help in bringing in green finance, technology and business partnerships.”
Prabhat Ranjan, senior director of a professional service firm Nexdigm, said, “This time there are more bets, especially after the US imposes an additional 25% tariff on selected imports. The result of these dialogues can a large extent to reset the dynamics of business between two economies.”
Marine, mineral links
The July 1 joint statement after a meeting of quad foreign ministers announced the expansion of Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA) in the Indian Ocean, with increased satellite data sharing and training. The first workshop to address the maritime capacity interval will be held in 2025.
Quad also launched important mineral initiatives to secure and diversify major mineral supply chains, including recovery of e-waste. On the economic front, it is committed to the construction of flexible infrastructure and strengthening energy security.
A logistics conference will be held in October under the ports of future partnership in Mumbai to promote port modernization. The US and India will co-consume an under-government forum to increase digital infrastructure cooperation.
In technology location, quad trusted digital systems, AI, semiconductors, biotech and cyber security will expand. The purpose of AI-Angz initiative is to run agricultural innovation. The Quad STEM Fellowships have expanded in Japan, while India has introduced scholarship for 50 Indo-Pacific students to earn a bachelor’s engineering degree in Indian institutions.
IPEF Pillars
India has already joined IPEF pillars on supply chains, clean economy and fair economy, giving it an important role in shaping future rules in Indo-Pacific. Although it remained out of the business column due to concerns over binding rules and limited benefits, India is still seen as a prominent player due to its strong manufacturing, digital economy and clean-technical development.
India’s participation in the supply chain column is particularly important. Under this column, 14 IPEF members have agreed to supplement and feed the series, representing 40% of the nation -global GDP, reducing the dependence on the same country and coordinating efforts to create an early warning system.
India’s strength in pharmaceuticals, semiconductors and electronics manufacturing makes it unavoidable in this agenda.
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