No free ride for India's rise as Trump official says US won't let India become rival like China

US Deputy Secretary of State Christopher Landau has stated at a conference in New Delhi that Washington will not grant India the economic benefits it once extended to China, which allowed Beijing to emerge as a key rival of the US.

"India should understand that we are not going to make the same mistakes that we made with China 20 years ago in terms of saying, ‘Oh, you know, we’re going to let you be able to develop all these markets and then, you know, the next thing we know is you’re beating us in a lot of commercial events,’" said Landau, who is currently in New Delhi leading the US delegation at the Raisina Dialogue 2026.

His remarks on Thursday came in the context of US-India economic ties and trade negotiations, emphasising that the US would not repeat past errors by granting India unchecked market access that could lead to it becoming a major economic rival like China.

Landau said that the US will make sure that any trade and economic ties with India "is fair to our people because, ultimately, we have to be accountable to our own people just as the Government of India has to be accountable to its people".

Landau added India-US trade deal negotiations are "almost at the finish line".

Landau stated that US foreign policy aims to further the nation's interests.

"We are not a charity organisation. We are not United Nations… However, America first does not mean America alone. Just as President Trump wants to make America great again, he will expect that the PM of India and other countries want to make their countries great," he said.

Landau highlighted India's potential as a defining power in the 21st century, saying, "I think one of the things that is undeniable is that this century is going to be, in many ways, a century in which we expect to see the rise of India. It's now the world's most populous country. It has incredible economic, human, and other resources that make it one of the countries that's going to decide the future of this century." 

He added that the US wants to be part of India's ascent and cultivate deeper ties based on mutual respect, reciprocity, and shared interests. 

Amid global disruptions from the ongoing US-Israel war on Iran, Landau urged India to diversify its energy sources and consider US supplies instead.

"I hope you are looking for alternate sources... You can't have a better alternative than the USA," he said, positioning his country as ready to play a larger role in India's energy security, addressing challenges for India's growing economy.

US-India trade deal

India and US agreed an interim trade agreement framework announced on February 6, 2026, by Trump and Indian Prime Minister Narendra Modi.

It's has been positioned as a precursor to a broader Bilateral Trade Agreement (BTA), with negotiations ongoing and expected finalisation in the coming months.

The interim deal is slated to become effective in April 2026. 

Under the deal the US will apply a reciprocal tariff rate of 18 percent on certain Indian goods, including textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home décor, artisanal products, and machinery.

This represents a reduction from previous levels, which reached up to 50 percent in some cases or included a 25 percent punitive tariff imposed over India's purchases of Russian oil, now withdrawn as part of the deal.

In exchange, India will eliminate or reduce tariffs on a range of US industrial goods, food, and agricultural products, such as dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine, spirits, and more. 

India will also buy over $500 billion worth of US goods over the next five years, including energy products, aircraft and parts, precious metals, technology, and coking coal. 

As part of the deal, India has committed to halting purchases of Russian crude oil, shifting imports toward US sources and potentially Venezuelan oil, with US facilitating negotiations.

Critics in India contend the deal favours the US, branding it a "humiliating cave-in" due to tariff threats and diplomatic pressure from Trump.

A major flashpoint is the potential flooding of India's market with subsidised US agricultural products, which critics say could devastate millions of small and medium farmers who employ over 700 million people. 

Trump has suggested that most trade deals negotiated under the threat of his tariffs remained valid, mentioning specifically India, despite the Supreme Court ruling those levies illegal.