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Republican setback gives India breathing space

Ashoke Raj

The 2026 US midterm elections have reshaped Washington’s political landscape, with the Democratic Party securing control of both chambers of Congress in a major setback for President Donald Trump and the Republicans. The outcome could have significant implications for India, offering New Delhi some diplomatic breathing space amid growing uncertainty over trade, immigration and strategic relations with Washington.

The Democratic victory reflects voter concerns over rising living costs, economic uncertainty, the Iran conflict and controversies surrounding the Trump administration. Although Trump will remain in office until January 2029, opposition control of Congress could constrain his legislative agenda through investigations, public hearings and increased scrutiny of executive decisions.

For India, trade is likely to remain a critical concern. Trump’s tariff policies have unsettled exporters and complicated negotiations between the two countries, particularly over agricultural market access, trade barriers and India’s purchases of Russian oil. With Democrats controlling Congress, the economic consequences of aggressive tariffs could face greater scrutiny, potentially strengthening India’s case for a more predictable trade relationship.

However, Democrats are not necessarily advocates of unrestricted free trade.

Republican setback gives India breathing space

Protecting American industries and workers remains an important priority across party lines. Therefore, a change in congressional leadership does not guarantee a softer US trade policy.

Energy security presents another challenge. India’s continued dependence on Russian crude has remained a sensitive issue in Washington, with proposed sanctions raising concerns about additional economic pressure on New Delhi. Greater congressional debate over sanctions could create diplomatic opportunities, but differences over India’s relationship with Moscow are unlikely to disappear.

Immigration is equally important. Restrictions on H-1B visas, including the proposed $100,000 fee for certain petitions, have raised concerns among Indian technology professionals and IT companies. Democratic lawmakers could question the economic costs of restrictive immigration policies, particularly for American businesses dependent on skilled international talent. Nevertheless, significant immigration decisions also fall within presidential and executive authority.

Despite these tensions, defence cooperation offers a stabilising foundation. India’s strategic partnership with the US, particularly in advanced technologies, defence manufacturing and Indo-Pacific security, enjoys bipartisan support. Shared concerns about China’s growing influence are likely to sustain cooperation regardless of political differences in Washington.

Ultimately, the Democratic takeover of Congress creates both opportunities and complications for New Delhi. Greater oversight could restrain abrupt policy shifts, but political confrontation in Washington may also make negotiations more difficult.

India must therefore avoid depending on political changes in the US. Strengthening domestic manufacturing, diversifying trade partnerships, expanding defence capabilities and preserving strategic autonomy should remain central to its foreign policy.

The midterm results may change the political equation in Washington, but they will not automatically resolve the structural differences between the two countries. For New Delhi, the real challenge is to turn this political opening into a more stable, balanced and mutually beneficial partnership with the United States.