India's Modi to boost trade, defense ties in US visit
February 11, 2025
Indian Prime Minister Narendra Modi will head to Washington on Wednesday for a two-day visit during which he is expected to discuss matters related to energy and defense imports with US officials.
"This visit will be an opportunity to build upon the successes of our collaboration in [Donald Trump's] first term," Modi said in a statement on Monday.
Trump's top economic adviser, Kevin Hassett, said that India has "enormously high" tariffs that lock out imports and Modi would have a lot to discuss with Trump when the two leaders meet later this week.
Many experts say that Modi's first meeting with Trump since his return to the White House presents both opportunities and challenges.
"This has been one of our strongest international partnerships in recent years," noted Indian Foreign Secretary Vikram Misri. "And prime minister's visit is in line with our steady engagement with the new administration following the election of President Trump."
Narrowing trade deficit
Though both leaders share a strong personal rapport, project a strongman image, and prioritize national interests and self-reliance, Trump's unpredictability could significantly influence the agenda and outcomes of meetings.
Ajay Bisaria, a former Indian envoy to Pakistan, told DW that Modi's outreach to Washington marks an early attempt by India to establish a working relationship with Trump.
"This meeting is expected to lay the groundwork for a broader compact between the two nations that deepens strategic alignment, with India likely to make concessions on tariffs and nuclear energy in exchange for gains in technology and defense," said Bisaria.
"I think the two countries should broach a FTA conversation that would provide a platform for openly discussing tariff concessions and other trade-related issues," he added
New Delhi has already taken significant steps in positioning with Trump's trade priorities by reducing tariffs on several key US imports in the latest union budget, such as high-end motorcycles, cars, and smartphone parts. US companies like Harley-Davidson, Tesla, and Apple will benefit.
Importantly, duties on fully imported motorcycles have dropped from 50% to 40%.
With the annual bilateral trade surpassing $190 billion (€184 billion) in 2022, the US is India's largest trade partner.
Bisaria pointed out that Modi's priority will be "India-first" diplomacy and strengthening its position in trade and defense while avoiding direct involvement in US-Europe tensions.
Ahead of the meeting Trump has hinted at imposing a new 25% import duty on steel and aluminum which is perceived as a move to boost domestic manufacturing.
"While strengthening the India-US Strategic Partnership has bipartisan support in the US, Trump's focus on deportation and tariffs does introduce a degree of unpredictability and even, potential friction," said Indian Foreign Minister S Jaishankar, who noted that Modi "will likely seek to build on personal ties with Trump and on strategic convergences, while managing potential areas of difference."
Defense and military cooperation
In order to narrow the trade gap, India may purchase more US military hardware — including C-130 Hercules military transport aircraft and P-8I maritime patrol aircraft from the US.
Strengthening partnerships in advanced nuclear technologies will also be a key focus of discussions during the visit.
Amitabh Mattoo, Dean of School of International Studies at Delhi's Jawaharlal Nehru University, told DW that while Trump is concerned about illegal Indian immigration and tariffs, India hopes that it can invest further and buying more weapons from the US.
"Apart from military hardware, it is expected that India will invest much more in the strategic relationship to buy nuclear reactors from GE and Westinghouse that will assuage some of Trump's concerns," said Mattoo.
"For Europe of course, Trump's own apparent irrationality of decision making and unpredictability is another set of concerns and they will work on Modi to try and be an ally as far as reaching out to the US and putting up a common front against his unpredictability," Mattoo added.
"That is where they get India wrong. It is in US's basket that India has put most of its eggs."
Former Indian Foreign Secretary Harsh Shringla said the focus of the visit will be on getting on the same page and ensuring alignment, as India is seen as a beneficiary of the Trump administration's policies.
"The endeavor would be to define the contours of a new partnership based on the priority that both leaders attach to the relationship. Both leaders would also seek to find the close connect established during Trump's first term defined by iconic events like 'Howdy, Modi!' in Houston and 'Namaste Trump' in Ahmedabad," Shringla told DW.
Key visit to France
Modi's trip to the United States will come on the heels of a two-day visit to France, where he co-chaired an action summit on artificial intelligence (AI) with French President Emmanuel Macron on Tuesday. Bilateral talks have been planned to strengthen the strategic partnership between the two nations.
Modi's engagements with France and the European Union (EU) underscore India's commitment to strengthening partnerships in technology, defense and sustainable development.
The AI summit will provide an occasion for Modi to enhance defense ties, particularly in joint production and technology transfer where the focus will be on co-developing advanced defense equipment, reflecting a mutual interest in bolstering security collaboration.
Just last week, Foreign Minister S Jaishankar underscored that a stronger India-EU relationship can be an "important stabilising factor" in a world that promises to be "so volatile and uncertain."
"The relationship between the two sides is more important now than ever before. Deeper India-EU collaboration is clearly in our mutual benefit," said Jaishankar at a seminar in New Delhi.
"India and Europe can do much together to bring greater stability to a more uncertain world. For a start, they could speed up the conclusion of the India-EU, Free Trade Agreement (FTA) which has been long in the making," Meera Shankar, India's former ambassador to the US told DW, adding that "their partnership for transitioning to clean technologies could also be strengthened."
Edited by: Keith Walker