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WASHINGTON, DC – As Indian Prime Minister Narendra Modi returned to New Delhi from Washington, he went back with growing American demands for India to buy more US products, from energy to hi tech defense systems.
The US it seems will become the largest supplier of energy and defense goods to India, replacing Russia.
The sticking point of new tariffs on Indian exports was not clear. India, which has an average tariff rate of 12% compared to the U.S.’s 2.2%, is reported to have presented concessions to address trade concerns. Discussions are underway on increasing U.S. agricultural exports to India, investments in nuclear energy, and tariff reductions across multiple sectors, including electronics, medical equipment, and chemicals.
Both agreed to a target of $500 billion in bilateral trade by 2030, but Trump did not deter in his aim of reducing the $45.6 billion trade deficit with India.
“India has been to us just about the highest-tariffed nation in the world,” President Donald Trump said at the White House, with Modi by his side. “Whatever India charges, we’re charging them.”
It was not all bad though with Modi unflaggingly put a good face on immigration and trade – the two points high on the PM’s agenda and urgency in coming to Washington – and Trump engaging in a good show of bonhomie.
Not all off the announcements made were new. Several US media reports said, was a continuation of what the Biden administration had in place but was being presented as a new one by the new US government.
Some highlights:
Press conference: Modi standing alongside Donald Trump also marked only the third press conference of his nearly 11-year tenure.
He has never held a solo press conference. In 2023, under pressure from the administration, he took just two questions during a joint appearance with then President Joe Biden.
Indian Americans: During the joint press conference, Modi also said, “The Indian community in America is an important link in our relationship. To deepen our people-to-people ties, we will soon open new Indian consulates in Los Angeles and Boston.” He also said, “We have invited American universities and educational institutions to open offshore campuses in India.”
Adani: Billionaire Gautam Adani, known for his close ties with Modi, has be charged with fraud in the US over a $250m bribery scheme. “Firstly, India is a democratic country, and our culture and our thought philosophy is ‘Vasudhaiva Kutumbakam’ which basically means that the entire world is a family. Every Indian is my own family member,” Modi said at the press conference. He then called it a “personal matter.”
India-China: Trump said, “I look at India, I do see the skirmishes on the border, which are quite vicious, and I guess they continue to go on. If I could be of help, I’d love to help because that should be stopped. That’s been going on for a long time and it’s quite violent. It’s quite violent.” Swiftly, India turned down the offer saying it has always adopted a bilateral approach in such cases.
India will buy oil: Highlighting India’s growing energy needs, Trump said, “We have some very big things to talk about; they (India) are going to be purchasing a lot of our oil and gas (from the US).” He added, “We have more oil and gas than any other country in the world and they (India) need it, and we have it.” India and the United States have reached an agreement that will make Washington “a leading supplier of oil and gas to India”, which could help bridge the trade deficit between the two countries, Trump flatters Modi: “He is doing a great job in India and he and I share a great friendship and we will continue to build on ties between our nations.” Welcoming Modi to the White House, Trump greeted him with a hug, saying, “We missed you a lot.”
Trump gift: Modi got a personalized photobook capturing their camaraderie over the years during their meeting.
Titled Our Journey Together, the book features photos from the historic Howdy Modi and Namaste Trump events. On the cover, Trump wrote, “Mr Prime Minister, You are great!” along with his signature.
Modi flatters Trump: The PM compared India’s “Viksit Bharat” vision with “Make America Great Again” slogan, and coined “Make India Great Again” (MIGA). He posted later, “President Trump often talks about MAGA.
In India, we are working towards a Viksit Bharat, which in American context translates into MIGA. And together, the India-USA have a MEGA partnership for prosperity!” He also thanked “my friend” Trump.
Immigration: Modi left without any apparent pledge to preser
ve legal immigration to the US, the H-1B visa which Indians are the top users of. Modi has reiterated his openness to India taking back verified illegals as a sop but it has not yet moved the Trump administration.
Fighter jets: Trump offered India Lockheed Martin Corp. F-35 fighter. It remains to be seen how it will move forward. Currently, Russia is the main supplier to India and there are concerns that the tech could fall in the enemy nation’s hands. India too is balking at the price tag as well as the maintenance of the aircraft.
Trump announces extradition: 26/11 Mumbai terror attack accused Tahawwur Rana will be sent to India said Trump, stating that he “will face justice.”
Education: There was agreement that in setting up campuses of premier American colleges in India.
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