Five Insights Unveiled From the Modi-Trump Meeting
Despite the initial hype surrounding Indian Prime Minister Narendra Modi’s first visit to Washington under US President Donald Trump’s second term, it was a relatively sober affair focused on business and diplomatic ties. Unlike state visits which are laden with pomp and circumstance, this working-level meeting lacked such flourishes.
During their discussions, Trump announced increased military sales to India from 2025, including F-35 stealth jets, along with heightened oil and gas exports aimed at narrowing the trade deficit between the two nations. Both leaders also agreed on negotiating a trade deal and finalizing a new defense framework.
Trump confirmed that US authorities had approved the extradition of Tahawwur Rana, a Chicago businessman accused of involvement in the 2008 Mumbai terror attack. Michael Kugelman, from the Wilson Center’s South Asia Institute, expressed satisfaction with these “deliverables” from an administration less than a month old. He noted that both sides appeared comfortable continuing collaborations initiated during Trump’s previous term, particularly in emerging technologies and artificial intelligence.
However, the visit also brought up several contentious issues. One major concern was Trump’s tariff policies, which have significantly impacted India’s exports to the United States. The Indian government has long criticized these tariffs as unfair trade practices that disadvantage Indian exporters.
The potential for a free trade agreement between India and the US was another focal point of discussions during Modi’s visit. Both leaders expressed optimism about reaching an ambitious goal of achieving $500 billion in bilateral commerce within the next few years. However, it remains unclear what kind of deal they are aiming at – whether it’s a full-fledged free trade agreement or simply focused on tariff reductions.
The defense sector also saw significant developments during this visit. Trump announced that US military equipment sales to India would increase dramatically by billions of dollars annually starting in 2018, potentially including the F-35 stealth fighter jets. This move comes at a time when Russia remains India’s primary arms supplier but its share has been decreasing.
However, there are significant bureaucratic hurdles and export controls that could limit these deals. Strategic affairs expert Ajai Shukla notes that while US military sales have increased significantly to India in recent years, high maintenance demands for aircraft like the F-35 may discourage Indian acquisition. Additionally, private companies often prioritize profit over long-term partnerships when selling arms.
On a lighter note, Modi also met with Tesla CEO Elon Musk during his visit to discuss artificial intelligence and emerging technologies. While details about this meeting were limited, it highlights India’s growing interest in these areas as potential new economic drivers.
In terms of public appearances, the joint press conference between Trump and Modi was notable for its rarity. This marked only Modi’s third direct press Q&A during his almost 11-year tenure as Prime Minister. He answered questions on illegal immigration and DOJ bribery charges against the Adani Group, a business empire with close ties to him.
Overall, while the visit brought about some tangible agreements between India and the US, it also raised several questions regarding trade imbalances, defense cooperation mechanisms, and technology transfers in an era of heightened geopolitical tensions.
