The US midterm elections delivered a significant setback for President Trump. Democrats gained majority in both, the House of Representatives and the Senate. However, they fell short of the two-thirds majority required to override President Trump’s veto power, leading to a legislative gridlock.

Given this, India will now need to adapt to a different congressional landscape. With a Democrat Congress set to take charge in January, the government’s work continues with its committees, subcommittees, and caucuses. They hold hearings, conduct oversight, shape agendas, and further policy outcomes. This is where India’s agenda can be furthered for the rest of the current presidential term.

Fault Lines and Common Ground
Trade and immigration are India’s most pressing concerns, but there are no easy fixes here. These issues largely remain with the executive, outside the Congress’ ambit. Trump’s tariff regime on national security and unfair trade practices grounds insulate him from judicial and congressional scrutiny. While India may believe it has more leverage due to Trump’s weakened position, a conclusive deal would need to reassure Americans. Immigration is a larger, harder question. Legislative curbs on immigration come from Trump’s restrictionists, and not an India-specific grievance.

Technology and defence cooperation, rooted in institutions like TRUST and the 2025 US-India Major Defence Partnership, are areas that have deep bipartisan roots and should largely withstand the new Congress. Energy is a newer frontier for both countries, and is seeing its importance growing, especially due to the impact of the Iran conflict. Russian oil procurement has been a key sticking point, though Washington has signalled a shift in its own position with the recent diesel deal. India’s Reliance Industries emerged as a key player in the US’ effort to reshape global energy flows. India’s position as a major oil buyer and refiner gives it bargaining power in negotiations on tariffs, market access, and visas.

The indirect effects of the midterm elections on India are just as important. The dollar’s post-election weakness pushed the rupee to a two-week high. Markets turned more cautious on US tech, data centres, and AI amid expectations of tighter regulation under a Democratic Congress. These conditions could create an opening for India to attract capital. Its demographics, relatively low corporate debt, renewable energy potential, and expanding consumer market support the case. These areas could be best engaged through various Congressional forums.

Where Opportunities Lie For India
Congress carries out specialised work through committees, subcommittees, and caucuses. Committees comprise small groups of lawmakers who handle legislative and oversight tasks, while subcommittees cover regions and subjects, and caucuses are informal groups that champion specific causes. Several incoming Democratic committee chairs matter to India. Representative Gregory Meeks, set to head the House Foreign Affairs Committee, had previously forced a vote against Trump’s Canada tariffs. Rep. Sydney Kamlager-Dove, a senior South and Central Asia subcommittee member, had warned Trump of becoming ‘the President who lost India’. The Senate India Caucus, the only country-specific one, co-chaired by Senator Mark Warner is also a crucial engagement avenue. Beyond foreign affairs, the Senate’s Finance, Armed Services, and Judiciary committees would be important for advancing trade-, defence- and immigration-related issues. These bodies could, however, also probe issues sensitive to New Delhi.

India has frequently engaged with the Trump administration, and this outreach should now extend to incoming Democratic committee chairs and new members. Indian companies can complement this outreach through issue-specific briefings showcasing their investments and jobs in US constituencies. Business groups and diaspora organisations can convene dialogues to highlight the economic benefits of India-US ties. Framing these engagements around local benefits becomes crucial as the midterms highlighted voters’ sensitivity to jobs, living costs, and economic security.

India should also deepen direct engagement with US states, where shared economic interests can deepen cooperation. Michigan and Texas are particularly relevant, following Democratic wins. Michigan combines a sizeable Indian-American community with strength in auto, defence, and advanced manufacturing. Texas has strong tech, energy, and healthcare sectors alongside a large diaspora. Both states already have established economic ties with India, providing a basis for deeper cooperation on jobs and investment.

For India, issue-specific engagement on important areas through Congressional mechanisms can build durable spheres of influence. These engagements could restore predictability to achieving the $500 billion bilateral trade goal, and reassure the 3.2 million Indian immigrant population. Existing tech initiatives like TRUST may be used to pursue co-development in critical technologies and ease export controls. India-US defence cooperation may expand technology sharing and co-production, and India could also reinforce its role as a key energy partner.

The midterm results are not a panacea for India’s concerns in Washington. It has merely changed the dynamic through which these issues will be negotiated, making sustained engagement with Congress more important. India and Indian companies should now invest in meaningful relationships on Capitol Hill and build support across committees, caucuses, and both parties.