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Modi-Trump meet: US to push India to prioritise defence & energy purchases, reduce trade deficit

Senior White House officials also said that a new defence framework is close to being signed, while the US President is likely to push New Delhi to purchase more American oil.

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New Delhi: India and the US are working on signing a new defence framework, while American President Donald Trump will push Prime Minister Narendra Modi to purchase more defence equipment, a senior White House official said Thursday.

“The defence portion of the partnership is strong and will get stronger under this administration. We are moving towards signing a new defence framework. Conversations on procurement of a number of defence equipment are ongoing and this will help reduce the trade deficit as well,” the senior White House official said.

Another official, speaking on the condition of anonymity, added: “We aim to build on defence sales with India and to ensure they [India] prioritises the use of American technology.”

The comments by the senior officials come hours ahead of the meeting between the two leaders in Washington D.C. PM Modi is in the US—for his first meeting with Trump—since the latter assumed the presidency last month. The Indian prime minister will be the fourth international leader to hold a bilateral meeting with Trump.

PM Modi will meet US National Security Advisor Michael Waltz, Tesla CEO Elon Musk, and entrepreneur Vivek Ramaswamy during the first day of his two-day visit.

The two leaders held a telephonic call last month, where the American president pushed Modi on ensuring “fair” trade between the two countries and to reduce the trade deficit. India exported roughly $77 billion worth of goods in the 2023-2024 financial year to the US, while it imported around $42.1 billion worth of goods.

“The two leaders will discuss how to improve trade relations and bring down the trade deficits. The key is ensuring fair trade,” said a senior Trump administration official.

The official, however, added that the “early body language” on trade from India has been “well-received by the Trump administration.” Trump is set to announce reciprocal tariffs on countries around the globe about an hour before meeting Modi.

“The President has been clear on his use of tariffs, as what he sees as a tool of policy making,” said the senior White House official, without offering any details if India would be impacted by the expected reciprocal tariffs.

Trump has in the past raised the issue of tariffs by the Indian government on American goods, including on the famed American motorcycle maker Harley Davidson.

The officials added that Trump will be pushing to increase energy sales to India, especially as another way to reduce the trade deficit. The American President will prioritise the purchase of US energy by India during the talks with Modi, added senior White House officials.


Also Read: Modi pitches Pinaka rockets to Macron as they discuss defence, civil nuclear ties, IMEC in Marseille


Critical technologies, India-China ties

An announcement on critical technology, including on semiconductors is expected at the conclusion of the Modi-Trump meet. The previous administration under President Joe Biden made critical and emerging technologies a cornerstone of the relationship with India. The two countries launched the India-US Initiative on Critical and Emerging Technologies (iCET) in 2023.

The Trump administration officials highlighted that the partnership on critical technologies will continue under the new administration.

The new administration sees an “opportunity” for India to be part of strengthening global supply chains to ensure that “critical supply chains” cannot be “weaponised” against free societies, in response to China’s manufacturing prowess.

“We are very proud to have in the summer of 2020 strengthened and augmented ties with India especially as it was facing border issues. India is a critical part of our Indo-Pacific strategy,” the Trump administration official said, on America’s support to New Delhi at the height of the Galwan clashes with Beijing.

The diplomatic chill between India and China following the Galwan clashes, has, in recent months seen a thaw. On 21 October, 2024, the two countries announced an agreement to disengage at the friction points on the border, which paved the way for a meeting between Modi and Chinese President Xi Jinping on the margins of the BRICS Summit in the Russian city of Kazan a few days later.

The India-Middle East-Europe Economic Corridor (IMEC) is also expected to figure in the talks, especially its promise of bringing peace and security through the construction of critical infrastructure links. IMEC envisions a transport route from India to Europe via West Asia. However, progress on the corridor has been slow given the conflict in Gaza.

“India and the US may be the most critical partnership in the 21st century,” said the senior White House official, indicating Trump’s intent to continue building on the momentum in ties which started during his first tenure.

(Edited by Tony Rai)


Also Read: Concern for India as Trump orders State Dept to ‘modify or rescind’ Chabahar sanction waivers


 

 

 

 

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