While the Quad is a strategic dialogue between the US, India, Australia, and Japan aimed to promote a free and open Indo-Pacific, the IPEF is a 14-nation effort to deepen economic cooperation in the Indo-Pacific.
Quad, though not a trade bloc, plays a strategic role in coordinating security and economic alignment among member nations. For Washington, both Quad and IPEF are critical forums to counter China’s growing economic and strategic clout while fostering supply chain resilience, technological standard-setting, and regional integration.
New Delhi’s strategy shift comes ahead of a Quad meeting in India later this year that US President Donald Trump is expected to attend.
“Every sovereign nation has the right to utilize all available channels to secure a deal that serves the interests of the country and its people,” said a person familiar with the Indian government’s thinking. “For any meaningful partnership, support must be mutual. One-sided expectations don’t work in trade negotiations,” this person said on condition of anonymity.
The move reflects New Delhi’s intent to convert its geopolitical leverage into tangible economic gains, with a US team scheduled to visit New Delhi on 25 August for a sixth round of face-to-face negotiations for a bilateral trade agreement.
Queries sent to spokespersons of the ministries of commerce, external affairs, the Prime Minister’s Office, the US Embassy in New Delhi, and the US Trade Representative remained unanswered.
Key Takeaways
- India may use its Quad and IPEF position for trade leverage.
- Geopolitical alignment with the US is being used for economic gains.
- Quad’s strategic role is being used despite it not being a trade bloc.
- Trump’s “tariff king” assertion casts a shadow over ongoing talks.
- US may reduce tariffs to keep the Quad process on track.
Additional bargaining power
India currently faces the highest reciprocal tariff rate among Quad members, with a steep 25% US duty on its goods and an unspecified penalty for buying Russian oil. Japan—despite securing what Trump described as a “historic deal”—will face a 15% duty on its exports to the US, reduced from 25%. Australia will pay a lower 10% duty, imposed from 2 April.
Despite several diplomatic overtures and trade concessions to skirt the revised US tariff framework, India remains under US scrutiny. Trump, during both his first and second terms, has repeatedly branded India as the “tariff king”, an assertion that casts a shadow over the ongoing trade talks.
“New Delhi has consistently adopted a calibrated approach in trade negotiations and other agreements. The reduction in duties in the Union Budget, which brought down the country’s average customs duty rate from 11.65% to 10.66%, reflects India’s commitment to fostering a more open trade environment. Mutual concessions are expected from all sides,” said a second person aware of the developments, also speaking on condition of anonymity.
Experts say India’s positioning in Quad and IPEF gives it added bargaining power in dealing with Washington.
“India has participated, negotiated, and signed three of the four pillars of IPEF, and it should not come under pressure to join the trade pillar. India should stick to its original stand,” said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), a think tank.
“The foundation of the Quad was to counter China by elevating India. But if differences persist among Quad members, such as India having higher tariffs, progress on security cooperation could be limited. The US is unlikely to risk the strategic opportunity the Quad presents and may keep tariffs on India in abeyance to preserve momentum,” said Amit Singh, associate professor, Special Centre for National Security Studies at Jawaharlal Nehru University.
“As per my understanding, the US will likely avoid raising tariffs on India, as it would want to keep the Quad process on track and ensure a favourable strategic outcome for itself,” he added.
‘Unjustified targeting’
India has termed Trump’s latest tariff threat on India for buying Russian oil as “unjustified and unreasonable” targeting. The government asserted that, like any major economy, India would take all necessary measures to safeguard its national interests and economic security.
“The US itself continues to import uranium hexafluoride for its nuclear sector, palladium for EVs, fertilizers and chemicals from Russia,” the external affairs ministry said on Monday.
The ministry noted that India’s Russian oil purchases were driven by a need to secure affordable and reliable energy after traditional suppliers shifted exports to Europe at the start of the Ukraine conflict. “At the time, the US had actively encouraged India’s oil imports from Russia to help stabilize global markets,” it added.
“India is part of Quad-led projects on new technologies like 5G, AI, quantum computing, and biotech, which strengthens its role in the US-backed plans. Its support for the IPEF clean economy pillar also matches its climate goals and can help bring in green finance, technology, and business partnerships,” said Dattesh Parulekar, assistant professor of International Relations at Goa University.
“The stakes are higher this time, especially after the US imposed an additional 25% tariff on select imports. The outcome of these talks could significantly reset trade dynamics between the two economies,” said Prabhat Ranjan, senior director at Nexdigm, a professional services firm.
Marine, mineral links
A 1 July joint statement after the Quad Foreign Ministers’ meeting announced the expansion of the Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA) across the Indian Ocean, with enhanced satellite data sharing and training. The first workshop to address maritime capability gaps will be held in 2025.
The Quad also launched the Critical Minerals Initiative to secure and diversify key mineral supply chains, including e-waste recovery. On the economic front, it committed to building resilient infrastructure and strengthening energy security.
A logistics conference under the Ports of the Future Partnership will be held in Mumbai in October to promote port modernisation. The U.S. and India will also co-host an undersea cables forum to enhance digital infrastructure cooperation.
In the technology space, the Quad will expand work on trusted digital systems, AI, semiconductors, biotech, and cybersecurity. The AI-ENGAGE initiative aims to drive agricultural innovation. The Quad STEM Fellowship has expanded to Japan, while India launched scholarships for 50 Indo-Pacific students to pursue undergraduate engineering degrees at Indian institutions.
IPEF pillars
India has already joined the IPEF pillars on supply chains, clean economy, and fair economy, giving it an important role in shaping future rules in the Indo-Pacific. Although it stayed out of the trade pillar due to concerns over binding rules and limited gains, India is still seen as a key player because of its strong manufacturing, digital economy, and clean-tech growth.
India’s involvement in the supply chain pillar is particularly significant. Under this pillar, the 14 IPEF member nations—representing 40% of global GDP—have agreed to coordinate efforts to identify and respond to supply chain disruptions, reduce dependencies on a single country, and create an early warning system.
India’s strengths in pharmaceuticals, semiconductors, and electronics manufacturing make it indispensable in this agenda.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
