'China hastily trying to melt the freeze with India': Investor after US official's threat of higher, secondary tariffs
Madhusudan said that India's net exports to the US comprise only 1 per cent of GDP.
- Aug 15, 2025,
- Updated Aug 15, 2025 11:48 AM IST
Investor and policy analyst Harsh Gupta Madhusudan on Friday took to social media to explain that US Secretary Scott Bessent's ultimatum to India is not a failure of New Delhi's multi-alignment diplomatic strategy. Madhusudan said that India's net exports to the US comprise only 1 per cent of GDP.
"India's real growth may fall from 6.5%+ to 6% or so, that too for a year, even if America puts 50% tariffs or more - and even that does not assume a stimulus or rerouting etc. Both of which are sensible assumptions," Madhusudan wrote in a post on X (formerly Twitter).
He explained that multi-alignment is more necessary than ever for India at this stage. "If anything, this shows that multi-alignment is even more necessary than ever for India. China is hastily trying to melt the freeze with India even as India signs a strategic pact with Philippines."
He further said that barring China, countries including Russia, the US, the EU, and Japan will continue to engage with India in economic and military terms as well. "India is its own pole. Deal with it," he concluded.
Meanwhile, China expert Arnaud Bertrand argued that India's multi-alignment diplomatic strategy worked to its detriment.
"This is frankly a complete failure of India's 'multi-alignment' diplomatic strategy: it was supposed to make India indispensable to all; instead it's made India dispensable to each. In other words, it's somehow made itself into the convenient adjustment variable that serves to absorb systemic tensions without systemic risk," he wrote.
He further explained why Trump threatened India when demonstrating toughness without risking any retaliation from Beijing.
"When Trump needs to demonstrate sanctions toughness without risking Chinese retaliation, he threatens India precisely because it's large enough to matter marginally but not powerful enough to retaliate meaningfully. That's the thing when you try to be friends with everyone: you risk becoming everyone's pressure valve, especially if you don't have the might to back up your positioning," he said.
Investor and policy analyst Harsh Gupta Madhusudan on Friday took to social media to explain that US Secretary Scott Bessent's ultimatum to India is not a failure of New Delhi's multi-alignment diplomatic strategy. Madhusudan said that India's net exports to the US comprise only 1 per cent of GDP.
"India's real growth may fall from 6.5%+ to 6% or so, that too for a year, even if America puts 50% tariffs or more - and even that does not assume a stimulus or rerouting etc. Both of which are sensible assumptions," Madhusudan wrote in a post on X (formerly Twitter).
He explained that multi-alignment is more necessary than ever for India at this stage. "If anything, this shows that multi-alignment is even more necessary than ever for India. China is hastily trying to melt the freeze with India even as India signs a strategic pact with Philippines."
He further said that barring China, countries including Russia, the US, the EU, and Japan will continue to engage with India in economic and military terms as well. "India is its own pole. Deal with it," he concluded.
Meanwhile, China expert Arnaud Bertrand argued that India's multi-alignment diplomatic strategy worked to its detriment.
"This is frankly a complete failure of India's 'multi-alignment' diplomatic strategy: it was supposed to make India indispensable to all; instead it's made India dispensable to each. In other words, it's somehow made itself into the convenient adjustment variable that serves to absorb systemic tensions without systemic risk," he wrote.
He further explained why Trump threatened India when demonstrating toughness without risking any retaliation from Beijing.
"When Trump needs to demonstrate sanctions toughness without risking Chinese retaliation, he threatens India precisely because it's large enough to matter marginally but not powerful enough to retaliate meaningfully. That's the thing when you try to be friends with everyone: you risk becoming everyone's pressure valve, especially if you don't have the might to back up your positioning," he said.