WASHINGTON: India and the United States have agreed to deepen their strategic and economic ties through a new defence framework that includes increased American equipment purchases, co-production, and a bilateral trade agreement.
The decision follows a meeting in Washington between Prime Minister Narendra Modi and President Donald Trump, during which they addressed key issues, including trade disputes stemming from reciprocal tariffs imposed by the American administration.
“We believe that collaboration and cooperation between India and America can shape a better world,” Modi said, introducing the concept of a MEGA partnership for prosperity by aligning Trump’s MAGA (Make America Great Again) with his own MIGA (Make India Great Again).
Reflecting the tone and substance of their nearly four-hour meeting, which included formal talks, dinner, and a press conference, the joint statement issued after the discussions mentioned "cooperation" 18 times, "collaboration" 11 times, and "trade" 16 times.
“Starting this year, we’ll be increasing military sales to India by many billions of dollars,” Trump announced at the joint news conference with Modi. “We’re also paving the way to ultimately provide India with the F-35 stealth fighters,” he added, while noting that this would take time.
According to the joint statement, both leaders pledged to accelerate defence technology cooperation across space, air defence, missile systems, maritime security, and undersea technologies. The US also announced a review of its policy on releasing fifth-generation fighters and undersea systems to India.
In response to the Trump administration’s imposition of reciprocal tariffs and its criticism of India as a “tariff king,” trade issues formed a substantive part of the discussions. Measures were agreed upon to develop a roadmap for a bilateral trade agreement.
“Today, we have set a target of more than doubling bilateral trade to 500 billion dollars by 2030. Our teams will work on an early conclusion of a mutually beneficial trade agreement. We will strengthen the oil and gas trade to ensure India's energy security. Investment in energy infrastructure will also increase,” Modi said.
Trump acknowledged India’s recent decision to reduce tariffs on certain imports and expressed his intention to begin discussions on trade disparities, aiming for an agreement. He also suggested that the trade deficit with India could be addressed through increased sales of oil and gas.
“We are a significant purchaser of US energy in any case. I think last year we purchased about $15 billion in US energy output. There is a good chance that this figure will go up to as much as $25 billion in the near future, and so therefore we are a significant producer, and today’s discussions did focus considerably on the possibility of more energy purchases. It is entirely possible that these increased energy purchases will contribute to impacting the deficit between the two countries as well,” Foreign Secretary Vikram Misri said.
Prime Minister Narendra Modi also stated that India will repatriate any of its citizens living illegally in the US while stressing the need for global efforts to combat human trafficking. Responding to a journalist’s question following his joint statement with President Trump, Modi clarified that this policy applies worldwide, asserting that anyone who enters a country illegally has no right to remain there.
His comments come just a week after 104 Indians were deported from the US on a military aircraft, with their hands and legs shackled, sparking controversy back home.
Trump, referring to Modi as a “great friend for a very long time,” also praised the Indian Prime Minister as a “much tougher negotiator” than himself. Modi, in turn, acknowledged Trump’s reputation as a dealmaker. “If there is any single person who can claim ownership of the word 'deal,' it is Trump,” Modi said.
The two leaders also decided to advance cooperation in critical and emerging technologies through the launch of the US-India TRUST Initiative (Transforming the Relationship Utilising Strategic Technology). This initiative aims to foster collaboration among governments, academia, and the private sector in areas such as defence, artificial intelligence (AI), semiconductors, quantum computing, biotechnology, energy, and space.
