Source: The post Indian exceptionalism ends under Trump policies
has been created, based on the article “Indian exceptionalism is over” published in “ Business Standard” on 22nd September 2025
UPSC Syllabus Topic: GS Paper 2 –Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
Context: Debate on H-1B curbs revived a larger question. Are recent US moves a targeted campaign against India? Parallel actions, shifting waivers, and rhetoric fuel this view. A longer history of Indian exceptionalism also shapes today’s expectations.
For detailed information on Trump’s Policies Impact India’s Economy and Workers read this article here
Is India Specifically Targeted?
- Visible policy hits: Indians receive over two-thirds of H-1Bs. Indian firms benefit most. Indian goods face a cumulative 50% tariff rate.A new remittance tax may burden people of Indian origin in the US.
- Regional signals: US ties with Pakistan seem to be improving without clear cause. Several US officials have needled India. These signals deepen suspicion.
- Concurrent punitive steps: Alongside H-1B news, Republican senators proposed 40% tariffs on Indian shrimp. The administration suspended the India-specific Chabahar waiver under the Iran Freedom and Counter-Proliferation Act. That waiver was granted in 2018. The tone has clearly shifted.
- What more could follow: Full CAATSA application is possible over the S-400 purchase, especially if India avoids major US platforms. Such steps would heighten pressure.
Or Is This Part of a Wider Pattern?
- Others feel singled out: Turkey points to F-35 exclusion and denial of a CAATSA exemption that India once received. Brazil faces 50% tariffs.South Korean engineers were deported in handcuffs. Many nations believe they are targeted.
- Services in the crosshairs: US ideas extend tariff logic to services. One proposal treats outsourcing like goods imports. Another would tax at 25% any payment by a US entity to a foreign person when the work benefits US consumers. Any passage would intensify pressure.
- Foreigners versus India: It may be less anti-India than anti-“foreign.” If broad skepticism drives policy, actions affecting India could reflect a general posture, not a bespoke campaign.
How Did Indian Exceptionalism Set the Stage?
- A high pedestal: For two decades, a bipartisan US consensus favored India. Rolling back those preferences hurts more precisely because there was farther to fall.
- Bush–Singh nuclear deal legacy: That deal entrenched expectations of Indian exceptionalism. India came to expect differential treatment across domains, including trade and technology.
- Trade bargaining misreads: Confident of special status, India offered a trade package without pledging zero tariffs on US manufactures. Others—EU, Vietnam, Malaysia, Japan, Indonesia, Thailand, and several in Latin America—removed such tariffs. A tougher US tariff stance toward India followed.
- Corporate overconfidence: Indian outsourcers operating in the US appeared to discount rising resentment over alleged hiring bias. Cognizant is appealing a finding of intentional discrimination. Cases against Wipro and TCS are progressing. The EEOC is investigations. US officials say staffing-firm dominance of H-1Bs distorts the program’s purpose.
What Follows If Exceptionalism Ends?
- Reading the next moves: Whether this is personal animus or broader policy will become clear in coming months. Either way, the era of assumed indulgence has faded.
- Strategic recalibration: India must expect fewer waivers and stricter US scrutiny across goods, services, and sanctions, and adjust its trade and technology choices accordingly.
- Look for new partners: Look to Europe, which launched a new India-specific policy resembling the earlier US consensus. This offers another path for preferential engagement.
Question for practice:
Examine whether recent US policies under President Trump specifically target India or reflect a broader anti-foreign approach.
