Highlights:
- India & US aim to double trade to $500 billion by 2030
- India to negotiate trade disparities while Trump criticizes high tariffs
- India may become eligible for F-35 stealth fighter jets
- Energy cooperation: US to become a key oil & gas supplier to India
- Modi announces “Make India Great Again” (MIGA) slogan
US-India Relations: Strengthening Economic & Defense Ties
In a high-stakes meeting at the White House, US President Donald Trump and Indian Prime Minister Narendra Modi focused on trade, defense, and energy partnerships, aiming to reshape US-India relations.
In a striking parallel to Trump’s “Make America Great Again” (MAGA), PM Modi introduced “Make India Great Again” (MIGA), signaling a stronger US-India alliance.
Bilateral Trade & Tariff Disputes
Trump criticized India’s high tariffs while confirming that New Delhi had agreed to negotiate trade disparities. He warned,
“Frankly, it no longer matters to us what they charge. We’re just going to say, whatever you charge, we charge.”
However, both leaders committed to doubling trade to $500 billion by 2030, focusing on supply chain resilience, AI, semiconductors, and pharmaceuticals.
India’s Foreign Secretary Vikram Misri:
US & India are working toward a trade deal, with the first phase expected by fall 2025.
India has already made trade concessions on motorcycles, luxury cars, and textiles.
Despite efforts to ease tensions, India still faces risks from a potential US-India trade war. With a $78.1 billion trade deficit and foreign investors pulling out $21 billion since September, market uncertainty looms.
Defense & F-35 Fighter Jets
US Military Sales to India: Billions of Dollars Incoming
Trump confirmed a major push to increase military sales, including the possibility of India acquiring the F-35 stealth fighter jets.
If finalized, India will join an elite group of F-35 buyers, including NATO allies, Israel, and Japan.
This marks a major shift in India’s defense procurement strategy, traditionally reliant on Russian and Western equipment.
🔹 Modi stressed India’s focus on joint development & technology transfer to boost indigenous defense production.
🔹 US National Security Advisor Michael Waltz also met Modi to discuss:
✔ Defense collaboration
✔ Strategic technologies
✔ Small modular reactors in civil nuclear energy
✔ Counterterrorism cooperation
Energy Cooperation: US to Supply Oil & Gas to India
Trump confirmed that India will increase US oil & gas imports to strengthen its energy security.
Modi seeks to reduce India’s dependence on coal, increasing LNG imports from the US.
However, India’s infrastructure constraints pose challenges to large-scale LNG adoption.
This deal comes as India faces a weak rupee & investor concerns, making energy security a top priority.
Also Read: Elon Musk Meets Modi: What Does Musk Want from India?
Market & Economic Risks: Trade War Concerns
Despite promising trade talks, concerns over a US-India trade war persist.
Foreign investors have pulled out $21 billion from Indian markets
The rupee has hit record lows
Stock market volatility continues amid economic uncertainty
To ease tensions, Modi has agreed to:
Lower tariffs on key US exports
Accept deportation flights for Indian migrants (a priority for Trump)
A senior US official stated, “The moves are modest but have been well received.”
Looking Ahead: US-India Relations in a Changing Geopolitical Landscape
With a potential F-35 deal, energy cooperation, and trade negotiations, US-India ties are evolving rapidly. However, risks remain as both nations navigate economic challenges and global trade tensions.
