Why India and the US are struggling to keep the trust alive in 2026

Why India and the US are struggling to keep the trust alive in 2026

The honeymoon is over. For years, we heard that the partnership between India and the United States was the "defining relationship of the 21st century." It sounded great on paper. It looked even better during state dinners. But right now, the gears are grinding. National security circles in Washington and New Delhi are quietly admitting what many feared. The trust has taken a hit.

Former US Principal Deputy National Security Advisor Jon Finer recently laid it out plainly. He noted that the India-US trust suffered a setback and signaled that both sides need to work fast to get things back on track. This isn't just diplomatic grumbling. It’s a warning about the fragility of an alliance that the world depends on for stability. When the person who was once the second-highest-ranking official in the White House's national security apparatus says there’s a problem, you listen.

The cracks in the foundation

What happened? It wasn't one single event. It was a pile-up. You can’t talk about this tension without mentioning the Pannun case. The allegations of a foiled assassination plot on American soil changed the vibe in DC almost overnight. For the US, it was a violation of sovereignty and a shock from a partner they thought shared their "rules-based order" values. For India, the reaction felt like an overreach and a double standard, especially given how Western intelligence agencies operate.

The disagreement isn't just about one guy in New York. It’s about how these two giants see the world. India refuses to be a junior partner. The US often struggles to treat allies as equals when their interests don't align perfectly.

Take the Russia-Ukraine conflict. Washington wanted New Delhi to pick a side. India chose India. They kept buying Russian oil and maintained a decades-long defense relationship with Moscow. To the State Department, this felt like a betrayal. To the Ministry of External Affairs, it was strategic autonomy. That gap in perception is where the trust started to leak out.

Intelligence sharing and the shadow of suspicion

Trust in geopolitics is built on intelligence. If I tell you what I know, I have to be sure you won't use it against me or leak it to someone who will. Right now, that flow of information is constricted.

US officials are worried about how deep Russian influence goes within the Indian bureaucracy. Meanwhile, Indian officials are skeptical of the "Five Eyes" alliance. They see the US, Canada, and the UK as a club that protects its own while lecturing everyone else.

The technology transfer hurdle

We also have the iCET—the Initiative on Critical and Emerging Technology. This was supposed to be the bridge. The idea was simple. Move away from just buying and selling weapons and start co-developing jet engines, semiconductors, and space tech.

It's a brilliant plan. But it’s stuck.
The US bureaucracy is a maze of Cold War-era export controls. Even when the White House wants to share tech, the mid-level officials at the Commerce Department often say no. India gets frustrated. They feel like they're being promised the world but only getting the leftovers. If you want a partner to stand with you against China, you have to give them the tools to do it. You can't hold back the "good stuff" and expect total loyalty.

Why this matters for the Indo-Pacific

The stakes are massive. Look at the map. If India and the US aren't on the same page, the Quad is basically a book club. The Quad—comprising the US, India, Japan, and Australia—needs India to be the anchor in the Indian Ocean.

China is watching this friction with a grin. Every time a US official criticizes India's human rights record or India slams US "interference," Beijing sees an opening. They want to prove that the US is an unreliable partner that will eventually abandon its friends.

The reality is that both countries need each other. The US needs India’s massive market and its military footprint to balance China. India needs US investment and high-end tech to modernize its economy and defend its borders. They’re stuck together. But being stuck together isn't the same as trusting each other.

How to actually fix the relationship

Finer mentioned that urgent work is needed. He’s right. But "urgent work" shouldn't mean more boring press releases. It means making hard choices.

First, the US needs to stop the public lecturing. If there are concerns about democratic backsliding or specific legal cases, handle them behind closed doors. Public call-outs only trigger a nationalist backlash in India, making it impossible for the government to cooperate even if they want to.

Second, India has to be more transparent about its security operations abroad. If you want to be treated like a top-tier global power, you have to play by the rules that top-tier powers (at least publicly) respect. The "shadow war" approach doesn't work when you're trying to build a deep strategic partnership with a democracy.

Breaking the bureaucratic deadlock

The iCET needs a win. Fast. We need to see a major co-production project actually hit the ground. Not a "memorandum of understanding." Not a "letter of intent." We need an actual factory floor in India building GE F414 engines with Indian engineers.

When people see tangible results, the high-level political tension starts to matter less. Economic integration creates its own gravity. It makes the cost of breaking the relationship too high for either side to pay.

The path forward is messy

Don't expect a sudden return to the "golden era" of 2023. The trust deficit is real and it’s deep. It’s going to take years of consistent, boring, low-level cooperation to mend what was broken over the last eighteen months.

The biggest mistake anyone can make is assuming this relationship is "too big to fail." History is full of failed alliances that looked perfect on paper. If the US and India don't address the specific grievances regarding intelligence and sovereignty, they’ll remain "frenemies" at a time when the world needs them to be much more.

Start paying attention to the small stuff. Watch the visa processing times. Watch the mid-level trade deals. Watch how often their defense ministers meet without cameras present. That’s where the real work happens. If those things don't improve, all the talk about "defining relationships" is just noise. Focus on the defense tech milestones and the resolution of the legal disputes. That is the only way this gets back on track.

AC

Ava Campbell

A dedicated content strategist and editor, Ava Campbell brings clarity and depth to complex topics. Committed to informing readers with accuracy and insight.