Modi Uses Indo-Pacific Tour to Expand India’s Strategic Footprint
Modi’s three-country tour produced defense, uranium, critical-minerals and strategic-partnership agreements, strengthening India’s role in the Indo-Pacific and supporting regional efforts to diversify security and supply-chain relationships.
MSA market desk
Desk brief
Prime Minister Narendra Modi’s July 6–11, 2026 tour of Indonesia, Australia and New Zealand produced a series of agreements spanning defense, civil nuclear energy, critical minerals and trade, reinforcing India’s effort to become a more consequential Indo-Pacific partner.
In Indonesia, New Delhi and Jakarta advanced defense cooperation through arrangements covering India’s BrahMos cruise-missile system and Astra air-to-air missiles, alongside initiatives involving maritime security, critical minerals and technology. The agreements give India another avenue to expand defense exports and deepen security ties in Southeast Asia.
Talks in Australia delivered an administrative arrangement enabling Australian uranium exports to India for peaceful civil-nuclear purposes. The two governments also broadened cooperation in critical minerals, energy, maritime security, technology and supply-chain resilience. In New Zealand, Modi and Prime Minister Christopher Luxon elevated bilateral ties to a strategic partnership, building on a free-trade agreement signed in April and discussions covering trade, maritime security, technology and people-to-people links.
The tour reflects a regional preference for diversified partnerships as governments manage China’s expanding military and economic influence while seeking greater clarity on the future scale of US engagement. It also highlights India’s balancing act: New Delhi is strengthening ties with like-minded partners while remaining economically dependent on China for important industrial inputs, including some rare-earth-related supply chains.
Continue the desk read
Related market intelligence
US Equity and Treasury Moves (Sept 28, 2026): Higher US Yields Squeeze Long-Dated African External Credit
US Treasury and equity moves on Sept 28 reprice global discount rates. A rise in US yields would hit long-dated African external paper hardest—raising refinancing premia, widening sovereign and corporate spreads and squeezing FX reserves on importers.
US 10-Year Near 5.2%: Duration and Discount-Rate Shock Compresses Appetite for Long-Dated African Credit
A US 10-year around 5.2% raises the global discount rate and duration losses for long-dated African eurobonds. Higher long-end US yields disproportionately widen spreads on higher-beta sovereign long maturities (Ghana, Zambia) and raise rollover premia for USD-liable borrowers.
Dollar Strength Near 101.1: FX Pressure Raises External Debt Service Risk for FX-Liable African Borrowers
A firmer dollar near 101.1 raises local-currency costs of servicing USD liabilities, pressuring FX-exposed sovereigns and corporates. Net importers and dollarised economies will face greater fiscal and rollover strain, increasing refinancing premia on external debt.
Fed Hike to 3.75–4.00%: Dollar and Funding Costs Reprice African External Debt
A 25bp Fed hike and a firmer SEP lift US discount rates and dollar funding costs, pressuring long-dated African eurobonds via duration and raising refinancing premia for importers; oil exporters and IMF-backed credits should show relative resilience.