Why does Mukesh Ambani-owned RIL contribute to MAGA when Donald Trump refuses to budge in US-India trade talks?

When Donald Trump raised the slogans of Make America Great Again (MAGA) and America First, little did he imagine that these might be echoed in a land thousands of kilometres away for which these were coined. However, these slogans appear to have attracted Mukesh Ambani-Nita Ambani-owned Reliance Industries Ltd as it has offered to buy the fresh consignment of US-made ethane, which was originally sent to China, but was re-routed to India after Beijing had slapped it with increased tariff charges. The RIL will use ethane in its cracker plant to produce ethylene, a key building block of plastic products. Besides, the conglomerate will add three more ethane carriers to its fleet.

India buys US ethane

Reliance is not the only country to import the US ethane. State-owned Oil and Natural Gas Commission (ONGC) has signed a deal with Japan's Mitsui OSK Lines Ltd, which will build, own and operate two very large carriers to import ethane. Another PSU, GAIL India Ltd too, has decided to expand the capacity of its cracker plants. India can not absorb the Chinese shockwaves, which Beijing sent in the US Tariff war, by slapping retaliatory tariffs on US goods. However, it can take some of the additional ethane supplies, giving Washington at least a short reprieve. 

India-US Trade Talks

India enjoyed a trade surplus of $43 billion with the US in the Financial Year 2024-25, just before Donald Trump announced the new tariff regime, which is essentially a reciprocal tariff system. The commerce ministry mandarins of both countries struggled to reach a consensus, but hit a wall after the US refused to budge on tariffs on steel, aluminium and automotive parts. The talks collapsed and the Indian delegation returned, though both sides are still working on a prospective trade deal. 

Reliance Industries extended its hand to the US after Chairman Mukesh Ambani and Reliance Foundation founder and chairperson Nita Ambani met Donald Trump on January 19, 2025, at a private reception in Washington ahead of the inauguration. Mukesh Ambani and Nita Ambani also attended the inauguration ceremony at the U.S. Capitol on January 20. They expressed their hope for deeper India-U.S. relations and wished Trump a transformative second term of leadership at the White House. Reliance Industries appears to have taken the first step in this direction.