India Prime Minister’s Visit to USA –
Feb 25
Prime Minister Narendra Modi's recent visit to the United
States has been a significant event, marked by high-level meetings, strategic
discussions, and the strengthening of bilateral ties between India and the US.
One of the primary focuses of the visit was to address trade issues and enhance
economic cooperation between the two countries. President Donald Trump emphasised
the need for a level playing field and discussed the possibility of reciprocal
tariffs to address the trade deficit. Both leaders agreed to work towards a
mutually beneficial trade agreement that could be finalised within the next few
months.
Here are the key highlights and outcomes of the visit:
Trade and Tariffs
During the meeting, President Trump emphasized the need for a
level playing field in trade between the US and India. He criticised India's
high tariffs on American goods and announced plans for reciprocal tariffs,
meaning the US would impose the same tariffs on Indian products that India
imposes on US products. Both leaders agreed to work towards a trade deal that
could be finalised within seven months. This deal aims to address the trade
deficit and enhance bilateral trade relations.
Energy Trade
The US is set to become a leading supplier of oil and gas to
India, which will help reduce the trade deficit between the two countries. The
partnership underscores the importance of energy affordability, reliability,
and stability. The US already supplies a significant portion of India's crude
oil needs, and this agreement will further boost the trade of liquefied natural
gas (LNG) and crude oil. The goal is to increase US energy exports to India to
$25 billion annually.
Defence Cooperation
India plans to increase its purchase of US defence equipment,
including the advanced F-35 fighter jets. This marks a significant shift in
military relations between the two countries. The US has reversed a
long-standing block on selling fifth-generation fighters to India, and both
nations have agreed to jointly produce autonomous weapon systems for
Indo-Pacific security. This cooperation will enhance India's defence
capabilities and strengthen the strategic partnership between the two
countries.
Extradition of Tahawwur Rana
President Trump confirmed the approval of the extradition of
Tahawwur Rana, a key figure in the 2008 Mumbai terror attacks. Rana, a Canadian
national of Pakistani origin, is currently in custody in the US. His
extradition to India is seen as a significant step in bringing justice to the
victims of the Mumbai attacks and highlights the strong counter-terrorism
cooperation between the US and India.
Counter-Terrorism
Both leaders reiterated their commitment to fighting radical
Islamic terrorism together. The extradition of Tahawwur Rana is a key part of
this commitment. The US and India have a long-standing partnership in
counter-terrorism efforts, and this meeting further solidified their joint
efforts to combat terrorism and ensure global security.
India-Middle East Economic Corridor (IMEC)
The India-Middle East-Europe Economic Corridor (IMEC) is a
significant initiative aimed at enhancing connectivity and economic integration
between Asia, the Middle East, and Europe. The corridor will include rail,
road, and sea routes, as well as electricity cables, hydrogen pipelines, and
high-speed data cables. This project is expected to boost trade efficiency,
reduce logistical costs, and secure regional supply chains. It is also seen as
a counter to China's Belt and Road Initiative.
I2U2 Initiative
The I2U2 initiative is a strategic partnership between India,
Israel, the UAE, and the US, aimed at enhancing economic development and
cooperation in various sectors such as water, energy, transportation, space,
health, food security, and technology. The initiative seeks to mobilise private
sector capital and expertise to modernize infrastructure, advance low-carbon
development pathways, and improve public health. One of the key projects under
I2U2 is the development of integrated food parks in India, which will
incorporate climate-smart technologies to reduce food waste and employ
renewable energy sources.
Civil Nuclear Energy
The US and India reaffirmed their commitment to the US-India
Energy Security Partnership, which includes cooperation in civil nuclear
energy. This partnership aims to increase energy trade, ensure energy security,
and establish the US as a leading supplier of crude oil, petroleum products,
and liquefied natural gas (LNG) to India. Both countries have committed to
fully realizing the US-India 123 Civil Nuclear Agreement by moving forward with
plans to build US-designed nuclear reactors in India through large-scale
localization and possible technology transfer. This collaboration will also
focus on developing advanced small modular reactors (SMRs) to ensure long-term
energy security.
Space Cooperation
The leaders discussed expanding civil space cooperation,
including sending the first Indian astronaut to the International Space Station
(ISS) by 2025. Group Captain Shubhanshu Shukla, an Indian Air Force pilot, has
been selected as the pilot for Axiom Mission 4 (Ax-4), a private astronaut
mission launching aboard a SpaceX Dragon spacecraft. This mission will mark
India's first human presence aboard the ISS and will involve conducting
scientific experiments and outreach programs in microgravity.
Russia-Ukraine Conflict
Prime Minister Modi welcomed President Trump's efforts to
mediate and resolve the Russia-Ukraine conflict. Modi reiterated India's stance
on peace through dialogue and emphasised that India is not neutral but firmly
on the side of peace. He highlighted his past meetings with Russian and
Ukrainian leaders and stressed the importance of negotiating solutions over
battlefield confrontations.
India-China Border Tensions
President Trump expressed his willingness to mediate in the India-China
border tensions if needed. However, India has tactfully rejected any role for a
third party in solving its border dispute with China, maintaining its
long-standing position that such issues must be resolved bilaterally. Foreign
Secretary Vikram Misri emphasised that India has always adopted a bilateral
approach to dealing with issues with its neighbours.
People-to-People Ties
Prime Minister Modi highlighted the significant contribution
of Indian students in the US and the importance of people-to-people ties. The
more than 300,000 strong Indian student community contributes over $8 billion
annually to the US economy and has helped create a number of direct and
indirect jobs. Both leaders expressed their commitment to streamlining avenues
for legal mobility of students and professionals and facilitating short-term
tourist and business travel.
Economic Integration
The India-Middle East-Europe Economic Corridor (IMEC)
initiative aims to boost economic integration between India, West Asia, and Europe.
This multimodal connectivity project will link India, the Middle East, and
Europe through sea and land routes, enhancing trade efficiency, reducing
transport time, and strengthening supply chain security. The corridor will also
support clean energy initiatives by facilitating green hydrogen and renewable
energy trade and promote digital integration through secure high-speed data
connectivity.
Technology Transfer
The US and India will focus on increasing technology
transfer, particularly in the energy sector. This includes sharing advanced
technologies related to renewable energy, energy efficiency, and grid
management. The aim is to help India transition to cleaner energy sources and
enhance its energy security. This collaboration will also involve training and
capacity-building initiatives to ensure the effective adoption and
implementation of these technologies.
Advanced Small Modular Reactors
As part of the civil nuclear energy cooperation, both
countries discussed the development of advanced small modular reactors (SMRs)
in India. SMRs are a new generation of nuclear reactors that are smaller in
size and offer several advantages, such as lower costs, enhanced safety
features, and greater flexibility in deployment. The US will support India in
the design, development, and deployment of these reactors, which are expected
to play a significant role in meeting India's growing energy needs and reducing
its carbon footprint.
Space Tourism
Both sides are exploring further cooperation in space tourism
and satellite systems. The collaboration aims to create opportunities for
commercial space travel and the development of cutting-edge satellite
technologies. This includes joint research and development projects, sharing
expertise, and fostering partnerships between space agencies and private
companies from both countries. The goal is to make space travel more accessible
and advance satellite communication, navigation, and Earth observation capabilities.
Advanced Space Manufacturing
The US and India will collaborate on advanced space
manufacturing, focusing on the development and production of high-tech space
components and systems. This partnership aims to boost innovation, enhance the
capabilities of both countries' space industries, and create high-quality jobs.
The cooperation will involve joint research, technology sharing, and the
establishment of manufacturing facilities to produce advanced space hardware,
such as propulsion systems, satellite components, and spacecraft structures.
Trade Agreement
Prime Minister Modi stressed the importance of concluding a
mutually beneficial trade agreement soon. Both leaders acknowledged the need to
address trade imbalances and create a fair and transparent trading environment.
The proposed trade agreement will cover a wide range of sectors, including
agriculture, manufacturing, services, and intellectual property rights. The
goal is to enhance market access, reduce trade barriers, and foster economic
growth for both countries.
Reciprocal Tariffs
President Trump outlined plans for reciprocal tariffs on
countries imposing duties on US imports. This means that the US would impose
the same tariffs on products from other countries that those countries impose
on US products. The aim is to create a level playing field and ensure fair
trade practices. India and the US will work together to address tariff-related
issues and find mutually agreeable solutions to enhance bilateral trade.
Bilateral Trade Target
India and the US set an ambitious target to double bilateral
trade to $500 billion by 2030. This target reflects the strong commitment of
both countries to deepen their economic ties and enhance trade relations. To
achieve this goal, they will focus on expanding market access, reducing trade
barriers, and promoting investment in key sectors such as technology, energy, defence,
and infrastructure. Both leaders expressed confidence in the potential for
significant growth in trade and investment between the two nations.
Prime Minister Modi's visit to the US has been a productive
and substantive one, with both countries reaffirming their commitment to
strengthening their strategic partnership and fostering economic growth. The
discussions and agreements reached during this visit are expected to have a
lasting impact on the bilateral relationship between India and the US.
