Economist and former RBI Governor Raghuram Rajan has questioned the much-praised Modi-Trump friendship after the United States imposed a 50% tariff on Indian goods while charging only 19% on Pakistan. Speaking at an event hosted by the Chicago Council on Global Affairs, Rajan said the move has left India deeply disappointed.
He noted that India had spent two decades strengthening ties with the US, only to face harsh trade treatment. “It’s a slap in the face for Modi,” Rajan said, adding that the Indian opposition is now questioning the Prime Minister’s close relationship with former US President Donald Trump.
Rajan criticised Washington for calling India a strategic partner while imposing the world’s highest tariffs on it. He reminded that the US had tilted toward Pakistan during the 1971 Indo-Pak War, which pushed India closer to the Soviet Union for decades.
The economist warned that these tariffs hurt small and medium businesses the most, as larger firms like Apple can negotiate exemptions. Once trade ties weaken, he said, rebuilding them becomes difficult since competitors like Bangladesh and Vietnam quickly fill the gap. Rajan concluded that the US’s actions have left India wary of depending too much on any single ally.
