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Modi’s US Trade Deal Resembles an IMF Bailout
February 9, 2026 at 9:30 AM GMT+8By Andy Mukherjee
A high political price.
Photographer: Hasnoor Hussain/AFP/Getty Images
Takeaways by Bloomberg AI
The US-India trade deal is many things, but a respectful accord between two major economies it is not. It tracks closer to an IMF bailout, only instead of receiving aid for reform, India will pay $500 billion to rehabilitate itself in America’s strategic orbit.While rivals Thailand, Malaysia, Indonesia, and Vietnam secured settled agreements, the textthat greeted Indians Saturday made it clear: This is the framework to an “interim” pact.
Indian exporters are getting a discount on the 50% duty they have faced since August — half of which was punishment for allegedly financing Vladimir Putin’s war in Ukraine via purchases of Russian oil.
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