India Edition

Donald Trump’s Cosy Ties With Pakistan Fray Nerves in New Delhi

Officials fear US diplomatic shift could ripple across the security landscape.

The Indian Army’s contingents march during the Republic Day parade at the ceremonial Kartavya Path in New Delhi, India, on Monday, Jan. 26, 2026.Photographer: Prakash Singh/Bloomberg

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By Advait Palepu and Debjit Chakraborty

May 8, 2026 at 11:30 AM UTC

Welcome to India Edition, Bloomberg’s daily dive into what’s moving the worlds of business, markets and politics in this dynamic, fast-paced economy. Hi, I am Advait Palepu, Bloomberg’s wealth reporter, filling in for Menaka. Today, I analyse the implications for wealthy Indians of recent changes to the rules on shadow banks. But first I asked our New Delhi Bureau Chief Debjit Chakraborty about Donald Trump’s influence on the geo-political tectonic plates across our region. If you didn’t receive this directly in your inbox, you can subscribe here, and share feedback with us here.

A year after India and Pakistan edged to the brink of an all-out war, a consequential diplomatic shift is unsettling New Delhi: Islamabad’s growing proximity to Donald Trump. Here’s what Debjit says about the situation.