Trump’s ‘Friendship’ with Modi Rings Hollow in Squeeze Spiral

Despite warm personal rhetoric between Prime Minister Narendra Modi and President Donald Trump, Washington’s hardline measures on H-1B visas, tariffs, and strategic steps reveal a pattern of India-unfriendly decisions with far-reaching consequences.

By MANISH ANAND

NEW DELHI, September 20, 2025 — Prime Minister Narendra Modi has repeatedly hailed US President Donald Trump as his “big friend.” Trump, in turn, has publicly embraced Modi as a close ally. Yet, beyond this rhetorical camaraderie, the Trump administration’s policy decisions increasingly suggest that India is being treated less like a partner and more like a rival.

The sharpest blow came with the shocking increase in H-1B visa fees — from $1,000 to an astronomical $100,000. For Indian IT engineers, who constitute the largest pool of H-1B applicants, this amounts to an effective barrier. American companies that once found India’s skilled talent cost-effective will now look elsewhere, undercutting the very advantage that powered India’s IT boom.

The move coincides with another strategic setback: the revocation of US sanctions exemptions for India’s involvement in Iran’s Chabahar port project. The port, vital for India’s connectivity with Afghanistan and Central Asia, now risks stalling under American pressure. Add to this Washington’s tacit role in enabling Saudi Arabia–Pakistan defence cooperation — a throwback to Cold War–era strategies of arming Pakistan through third parties — and a pattern emerges of US actions undercutting India’s regional interests.

Trade relations tell a similar story. Trump’s administration has imposed steep tariffs of up to 50% on Indian exports, eroding one of New Delhi’s few trade surpluses. While India continues to grapple with a massive trade deficit with China and other BRICS partners, the US squeeze threatens its most reliable economic partnership.

The risks extend to India’s macroeconomic stability. Remittances from the Indian diaspora — $135 billion annually — form a crucial pillar of foreign exchange reserves. Curtailing access to US labour markets jeopardizes this flow, much like the collapse of remittances that precipitated Sri Lanka’s recent economic crisis.

For a country where IT and pharmaceuticals remain the few high-paying job engines, the potential fallout is grave. If talent pipelines to the US close, India faces not just lost revenue but also rising unemployment among its most skilled workforce.

Trump, however, appears less concerned with global talent flows than with domestic optics. His “America First” politics thrives on portraying foreign workers as threats to American jobs. The irony is clear: while Modi tweets about “friendship,” Trump’s administration acts in ways that systematically undercut India’s economic interests.

The question Indians must now ask is blunt: what kind of friendship extracts such a heavy price?

(This is an opinion piece, and views expressed are those of the author only)

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About The Author

Manish Anand

Manish Anand is a senior journalist with more than two decades of hardcore reporting on beats such as Prime Minister’s Office, Parliament, BJP, Congress, Planning Commission, NITI Aayog, and scores of Union Ministries.

His past has been with The New Indian Express, The Asian Age/Deccan Chronicle, and The Statesman.

For about 15 years, Manish was also a regular commentator and host for talks on AIR on foreign affairs.

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