Of Modi’s trade deals: Is India’s sovereignty on sale to Washington?

By Bhabani Shankar Nayak*

The recent statements by US Treasury Secretary Scott Bessent and US Energy Secretary Chris Wright, indicating that the United States permitted India to purchase Russian oil, have raised questions about India’s economic sovereignty. These remarks suggest that decisions regarding India’s trade and energy purchases are influenced by Washington, placing the Indian government in a position of dependence on US policy.

US Deputy Secretary of State Christopher Landau has also made remarks perceived as unfriendly toward India, yet the Indian government continues to align with American interests. The executive order issued by President Donald Trump on February 6, 2026, has been interpreted by some analysts as a measure that undermines India’s ability to make independent economic decisions.

Critics argue that the current Indian government’s political approach reflects a willingness to accommodate external pressures, particularly from the US and its allies in Europe and the UK.

Historically, these countries have pursued policies that constrained India’s economic and technological development, including tariffs, sanctions, and embargoes.

Observers note that India’s trade agreements with these nations may prioritize external interests over domestic needs, raising concerns about long-term impacts on livelihoods and sovereignty.

Domestically, questions have also been raised about the consistency of political messaging. While appeals to patriotism are made through cultural and religious symbolism, reports indicate that companies engaged in beef exports, including those with links to political figures, contribute financially to ruling party activities.

This has led to accusations of hypocrisy, with critics suggesting that economic interests often outweigh ideological positions.

The broader concern expressed by analysts is that India’s economic and foreign policy decisions are increasingly shaped by external powers, particularly Washington, London, and Brussels. This dynamic, they argue, risks weakening India’s autonomy and concentrating benefits among a limited set of companies and political actors.

The alignment of political ideology with global capitalist structures is seen as reinforcing patterns of inequality and cronyism, both domestically and internationally.

The implications of this alignment extend beyond India. Commentators warn that the convergence of nationalist politics with global economic power structures may undermine democratic processes and exacerbate social divisions. They argue that resisting such trends is essential to safeguarding sovereignty, democracy, and equitable development for people in India and worldwide.

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*Academic based in UK

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