Modi and Trump agreed to negotiate a trade agreement by the autumn of 2025, increasing trade and supply chain integration and reducing tariffs, and other deals.
Modi Trump press conference Feb 14 2 rs

Prime Minister Modi and President Trump shake hands in the Oval Office, The White House, Washington, DC (Screenshot)

Indian Prime Minister Narendra Modi recently visited the United States, infusing a breath of fresh air into the bilateral relationship. That Modi was able to visit Washington very early in the second term of President Donald Trump signals that India is one of the priorities of the second Trump administration

His visit to Washington followed closely after those of the Japanese and Israeli prime ministers and the King of Jordan. All four are close US allies. In India's case, however, things are different as India has never been an ally of the US. 

US-India relations have taken a turn for the better in the aftermath of the end of the Cold War. A series of foundational agreements have been signed between the US and India, including the:

  • Logistics Exchange Memorandum of Agreement (2016);
  • Communications Compatibility and Security Agreement (2018); 
  • Industrial Security Agreement (2019); 
  • Basic Exchange and Cooperation Agreement (2020), and 
  • Memorandum of Intent for Defense Innovation Cooperation (2018).

It is a relationship with many positive angles, such as the burgeoning India-US trade ties. The people-to-people ties with the US are among the strongest India has with any country. In addition, Indian-Americans are present at almost all levels of US governance, including some in very high posts, which is a distinct advantage.

President Donald Trump welcomes Prime Minister Narendra Modi to the White House on February 14, 2025 (©Photo gallery, Prime Minister of India)

Takeaways from the Trump-Modi Summit

During PM Modi's visit to the US, Washington offered India the sale of the F35 fighter jet. However, as of now, India's interest in the F35 is low owing to issues of price and technology transfer. It is worth mentioning that defense relations have moved very fast between India and the US. So much so that India is now one of the biggest importers of US military hardware. This is a definite shift from Dehli's overdependence on Russia

These days India is buying a huge number and range of US-origin defense equipment. Major US-origin platforms in use include C-130J, C-17, Apache, Chinook, MH60R helicopters, and the P8I. Since 2022, US naval ships have visited Indian Shipyards for repairs and allied services based on commercial contracts. 

In the joint statement released at the end of the meeting between PM Modi and President Trump, they announced: "plans to pursue this year new procurements and co-production arrangements for "Javelin" Anti-Tank Guided Missiles and "Stryker" Infantry Combat Vehicles in India to rapidly meet India's defense requirements."

The two leaders also committed to negotiating the first phase of a trade agreement by autumn of 2025. Talks between the two countries will focus on "market access, tariff reductions, and supply chain integration across goods and services." In a momentous decision, the US and India also agreed to increase their trade from the current $190 billion USD to roughly around $500 billion. 

Growing Cooperation and Investment

India and the US are also collaborating in the field of anti-terror cooperation. Both countries have been victims of major terror attacks in the past. 

Also, Indian companies are now investing in the US in a big way, with ongoing investments worth approximately $7.35 billion. They include, for example, investments by:

  • Hindalco's Novelis in finished aluminum goods at their state-of-the-art facilities in Alabama and Kentucky, 
  • JSW in steel manufacturing operations at Texas and Ohio; 
  • Epsilon Advanced Materials in the manufacture of critical battery materials in North Carolina; and 
  • Jubilant Pharma in the manufacture of injectables in Washington."
PM Narendra Modi and President Trump meet in the Oval Office, in Washington, on February 14 (Screenshot)
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Challenges

Unquestionably, there are quite a few challenges in the relationship as well.

One is India's close historical ties with Russia, which have stood the test of time. The majority of India's military hardware is still of Russian origin and the Russians have been much more forthcoming than the Americans when it comes to technology transfer. Besides, another complaint from the Indian side has been that the Americans supply the same kind of weaponry to India's arch-rival, Pakistan, as to India.

India also imports Russian oil and gas, which is another issue. While Western countries, led by the US have been urging India to stop importing Russian energy resources, New Delhi has not heeded those concerns. 

America's deportation of illegal Indian immigrants back to India, too, has led to a lot of criticism from the Indian side. 

Although India has concerns about China, there are many areas where India and China are partners too. They include participation in organizations like the BRICS and also in the Shanghai Cooperation Organization

The Japan Factor

PM Modi's visit to the US comes close on the heels of the successful Washington visit of Japanese PM Shigeru Ishiba. Though many observers had warned that US-Japan relations were on a slippery slope following the reported desire of PM Ishiba to mend ties with China, things have become much better since their summit. 

It is worth mentioning here that the US, India, Japan, and Australia are partners in the Quadrilateral Security Dialogue known as the Quad. They also participate in joint naval actions known as the Malabar Exercises. In addition, the US and India have a host of bilateral military exercises, which build interoperability with US allies like Japan.

There is no denying that relations between the world's oldest democracy and its biggest are slated to reach newer heights in the four years ahead.

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Author: Dr Rupakjyoti Borah

Dr Rupakjyoti Borah is a Senior Research Fellow with the Japan Forum for Strategic Studies. The views expressed here are personal.

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