Indian Prime Minister Narendra Modi’s visit to Washington this week was a focused, business-oriented trip, with key agreements with President Donald Trump and challenges shaping the US-India relationship.
The working visit saw Trump announce a significant expansion in US military sales to India, including F-35 jets, alongside increased oil and gas exports to help narrow the trade deficit.
Both nations agreed to negotiate a trade deal and finalize a new defense framework, with the US also approving the extradition of Tahawwur Rana, accused of involvement in the 2008 Mumbai attacks in India, reports BBC.
The two countries also set a bold trade target of $500 billion by 2030, aiming to double the current $190 billion trade volume.
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However, uncertainties remain around the specifics of the trade deal, with experts divided on whether it will be a full free trade agreement or targeted tariff reductions.
A critical concern was Trump’s order for reciprocal tariffs, which could lead to import taxes on US trading partners.
India, which enjoys a trade surplus with the US, preemptively reduced its average tariffs to mitigate this.
While some experts, like Ajay Srivastava, believe India is unlikely to face significant tariff hurdles, others, including Abhijit Das, warn that non-tariff barriers could still pose challenges, especially in agriculture, where US subsidies and strict regulations may complicate negotiations, BBC adds.
On defense, the US committed to a multi-billion-dollar arms sale to India, including F-35 jets, although logistical and bureaucratic hurdles could slow progress. Despite this, India’s growing reliance on US defense equipment suggests further deepening of ties.
Modi’s meeting with Elon Musk was notable, as it touched on emerging technologies and AI, though Tesla’s entry into India remains uncertain. Modi also held a rare press conference with Trump, answering questions on illegal immigration and the Adani Group bribery charges, marking a shift from his usual approach to media interaction.
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