In a strategic move to fortify US-India relations, Indian Prime Minister Narendra Modi is set to meet with US President Donald Trump in Washington. This meeting marks an attempt to reinforce bilateral ties amidst recent tensions over tariffs and divergent geopolitical stances.
Modi's visit to Washington is laden with significance, especially considering his steadfast nationalistic approach and the recent electoral triumph of his Hindu nationalist party in key Indian regions, including New Delhi. The trip presents an opportunity to bolster cooperation in pivotal sectors such as technology, trade, defense, and energy. Modi emphasized the potential to deepen our partnership before embarking on the visit.
However, discussions are expected to touch upon challenging topics. Trump's administration has made its stance on tariffs unmistakably firm, having recently imposed them on goods from China, the European Union, and even its North American neighbors. India has not escaped this scrutiny, with Trump having labeled it as a tariff king. In response, India has made concessions by reducing tariffs on select American goods, including a reduction from 50% to 40% on certain Harley-Davidson motorcycles, and dropping retaliatory tariffs on American almonds, apples, and other commodities.
Despite a deficit, the US is India's largest trade partner with a total Indo-U.S. trade worth approximately $190.1 billion in 2023. This figure includes $70 billion in exports to India from the US and $120 billion in imports. The economic dynamics between these two large democracies are complex, with a noted trade deficit of $50 billion in India's favor, a figure that Trump aims to address.
Key defense collaborations are cementing the relationship further. A noteworthy development is the agreement between General Electric and India’s Hindustan Aeronautics to manufacture jet engines domestically. The sale of MQ-9B SeaGuardian drones further emphasizes defense as a cornerstone of Indo-U.S. relations.
Immigration will also be a topic on the table. Recently, India agreed to the return of 104 migrants as part of the US's efforts to manage immigration policies effectively. This gesture aligns with India’s broader commitment to aligning with U.S. strategic goals.
For the Trump administration, strengthening ties with India is part of a broader strategy to counterbalance China's rising influence in the Indo-Pacific region. India's role is pivotal, particularly as it prepares to host a summit for the Quad nations, consisting of the US, India, Japan, and Australia. This alliance is crucial in maintaining a balanced power dynamic in the region.
The summit thus aims not only to resolve economic divergences but also to align on geopolitical strategies, solidifying the US-India alliance against shared global challenges.