Prime Minister Narendra Modi’s bilateral meeting with US President Donald Trump in Washington DC on Thursday evening has set the course for India-US partnership in a number of key areas over the next few years. Here are some key takeaways:
Trade and Investment
The two sides set a target of more than doubling bilateral trade to $500 billion by 2030. Focus will be on increasing market access, reducing tariff and non-tariff barriers, and deepening supply chain integration. The first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) is to be negotiated by fall of 2025. US and Indian companies will be nudged to make more greenfield investments in high-value industries in each other’s countries. Trump said US plans to impose reciprocal tariffs on India.
Energy supplies
The US and India reached an agreement on importing more oil and gas that can reduce the trade deficit between the two countries, US President Donald Trump said at a media interaction on Thursday. There is a good chance of India increasing its energy purchase from the US from $15 billion last year to $25 billion in near future, Foreign Secretary Vikram Misri pointed out.
Defence purchase
Plans announced to finalise a new 10-year framework for the US-India major defense partnership in the 21st century. Ongoing defence procurement negotiations for a number of platforms including land and air systems as well as co-production agreements, to move forward. Discussions to be initiated on the reciprocal defence procurement agreement. The US to begin review of its arms transfer regulations including the international traffic in arms regulations in order to streamline defence trade, technology exchange and maintenance, spare supplies and in-country repair and overhaul of US-provided defence systems. Trump offered to sell F-35 fighter jets to India, but Indian officials said formal process has not started.
- Read also: PM Modi Trump Meeting Live Updates: Modi & Trump pledge to double India-US trade to $500 billion by 2030
Civil nuclear cooperation
Agreement reached on building US designed nuclear reactors in India and taking forward the process also through large-scale localisation as well as technology transfer. Cooperation in small modular reactors flagged at the meeting. Some of the legal provisions that have remained in place in India have already begun to be addressed, according to the MEA.
Artificial Intelligence and emerging tech
The two sides committed to bring Indian and US private industry together and conclude a US-India roadmap on accelerating AI infrastructure by the end of the year. The countries will work together to enable industry partnerships and investments in next generation data centers on access to compute and processors for artificial intelligence. The leaders also launched Indus Innovation, a new innovation bridge that is modelled after the successful IndusX platform for defence applications. It will focus on space, on energy and other emerging technologies.
Quad partnership
The joint statement noted that Prime Minister Modi looked forward to hosting President Trump in New Delhi for the Quad leaders’ Summit, ahead of which the leaders will activate new Quad initiatives on shared airlift capacity to support civilian response to natural disasters and maritime patrols to improve interoperability. The other Quad members include Japan and Australia.
IMEC and I2U2
Addressing uncertainty on the fate of the India-Middle East-Europe Corridor and the I2U2 (India, Israel, US, UAE) Group due to the Israel-Hamas conflict, the two leaders announced that they planned to convene partners within the next six months hoping to announce new initiatives in 2025. The two resolved to increase cooperation, enhance diplomatic consultations, and increase tangible collaboration with partners in the Middle East.
Legal mobility & illegal immigration
Modi and Trump committed to streamlining avenues for legal mobility of students and professionals, and facilitating short-term tourist and business travel, while aggressively addressing illegal immigration and human trafficking by taking strong action against bad actors, criminal facilitators, and illegal immigration networks to promote mutual security for both countries.