Narendra Modi’s Visit to US

Prime Minister Narendra Modi will be one of the first world leaders to meet US President Donald Trump in his second term , reflecting the growing strategic partnership between India and the US .

  • Modi's visit follows the visits of Israeli Prime Minister Benjamin Netanyahu and Japanese Prime Minister Shigeru Ishiba , signifying India's increasing global diplomatic stature .
  • The visit will also serve as an opportunity for Modi to discuss trade, defence, and energy cooperation to further strengthen bilateral relations .

Trade Relations and Economic Cooperation

  • Trade will be a key agenda during Modi's visit.
  • Trump has previously referred to India as a "tremendous tariff maker" , criticizing India’s high import duties on US goods.
  • India has pre-emptively reduced customs duties on several products like:
    • High-end motorcycles (benefiting Harley-Davidson ).
    • Lithium-ion batteries for electric vehicles (benefiting Tesla ).
    • Mobile phone battery manufacturing equipment (benefiting Apple ).
  • The Indian government is reviewing tariffs on 30 other items to improve trade relations and reduce trade imbalance with the US.
  • Modi may also restart discussions on a limited trade agreement , which was nearing finalization during Trump's first term
Narendra Modi’s Visit to US

Trade Deficit and Reciprocal Duties

  • India has a trade surplus with the US , meaning India exports more to the US than it imports.
  • To prevent reciprocal tariffs by Trump, Modi will likely emphasize steps India has taken to:
    • Reduce the trade deficit .
    • Open new markets for US exports in defence, energy, and technology sectors .
  • This step is crucial to avoid trade sanctions or penalties from the US.

Immigration and H-1B Visa Issue

  • H-1B visa is widely used by Indian software companies to send skilled workers to the US.
  • Trump has previously criticized this visa program, but his administration continues to support sourcing skilled talent from India .
  • Modi may seek to:
    • Expand the H-1B visa program to benefit Indian IT companies .
    • Ensure humane treatment of illegal immigrants deported to India (as some were seen in shackles).

Defence Cooperation

  • Since 2008, India has purchased US defence equipment worth $20 billion , signaling a shift from Russia to the US in India's defence procurement.
  • Major defence purchases from the US include:
    • C-130J Super Hercules transport aircraft .
    • C-17 Globemaster transport aircraft .
    • Apache attack helicopters .
    • Chinook heavy-lift helicopters .
  • India is planning to purchase:
    • 31 drones from the US.
    • 114 multi-role fighter aircraft (MMRCA) under a global tender.
    • Reconnaissance aircraft and infantry vehicles .
  • Increasing defence purchases from the US will help correct the trade imbalance between both countries.

Energy Cooperation and Nuclear Energy Partnership

  • Energy cooperation will be a key aspect of the visit.
  • India aims to reduce its dependence on fossil fuels and increase its reliance on nuclear energy .
  • India's target is to generate:
    • 100 GW of nuclear power by 2047 (currently only 8 GW).
  • India has announced plans to amend its nuclear liability laws to make it easier for US companies to supply nuclear reactors to India.
  • India is also keen to develop:
    • Small modular nuclear reactors (SMRs) in collaboration with the US.
    • Expand its civil nuclear energy cooperation with the US.

Geopolitical and Strategic Importance

  • Strengthening India-US ties will help counter the influence of China in South Asia and the Indo-Pacific region.
  • Improved defence cooperation will help India enhance its military capabilities and strategic position .
  • Trade and energy cooperation will diversify India's energy needs and reduce dependence on fossil fuels .