Modi in US: India & US agree to double trade and boost defence ties
Visits
8 min read
Prime Minister Narendra Modi concluded his two-day visit to the United States of America (USA) with an agreement to more than double bilateral trade to $500 billion by 2030 and a new framework for the US-India major defence partnership for the next 10 years.
Prime Minister Narendra Modi was on a two-nation tour of France and the USA from 10-13 February 2025.
Prime Minister Modi was on a visit to the USA on 12 &13th February 2025.
Following are the major highlights of PM Modi’s visit to the USA
Fourth world leader to meet Trump at White House
He was the fourth world leader after -Israeli Prime Minister Benjamin Netanyahu, Japanese Prime Minister Ishiba Shigeruto, and Jordan’s King Abdullah II - to visit the United States to meet President Donald Trump after he was sworn in as the 47th President of the USA.
White House is the official residence and office of the President of the United States of America .
U.S.-India COMPACT for the 21st Century launched
During his meeting with US President Donald Trump at the White House, both leaders discussed bilateral, regional, and global issues.
They launched a new initiative titled the "U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century. It outlines the goals and programmes between the two countries that will guide the relationship between the two countries in the future.
Trade and Investment
Mission 500 launched to more than double total bilateral trade to $500 billion by 2030.
In 2023-24, the bilateral trade between the two countries was USD 119.71 billion.
To achieve this goal, both countries will start negotiations for a multi-sector Bilateral Trade Agreement between the two.
India will buy more defence systems, oil, and gas from America to reduce the American trade deficit with India.
Trade in 2023-24
- Total trade in 2023-24 - USD 119.71 billion.
- Indian exports to the US were USD 77.51 billion, while imports from the US were USD 42.19 billion.
- India enjoys a trade surplus of USD 35.31billion with the United States.
- The United States was the largest trading partner of India in 2023-24.
- The USA is the 3rd largest investor in India, with cumulative FDI inflows of US$ 65.19 billion from April 2000 to March 2024.
Defence Ties
- India and the US will sign a new 10-year “ Framework for the U.S.-India Major Defence Partnership in the 21st Century”.
- The US will sell its defence system and will co-produce with India.
- In 2025, the US will sign an agreement with India for the sale and co-production of its Javelin Anti-Tank Guided Missiles and "Stryker” Infantry Combat Vehicles..
- Both countries will enhance cooperation in defense technology cooperation across space, air defense, missile, maritime, and undersea technologies.
- The U.S. will review its policy on selling its fifth-generation fighter aircraft, F-35, and undersea systems to India.
- India to host the 4th Tiger TRIUMPH or Tri-Services India U.S. Amphibious Exercises this year.
Energy Ties
- Both countries agreed to strengthen the U.S.-India Energy Security Partnership in oil, gas, and civil nuclear energy.
- The US wants to export oil and gas to India to reduce its trade deficit with India.
- Currently, the United States is the fifth-largest supplier of crude oil and second-largest supplier of liquefied natural gas (LNG) after Qatar to India.
Launch of INDUS Innovation
- U.S.-India TRUST ("Transforming the Relationship Utilizing Strategic Technology”) initiative launched to advance U.S.-India industry and academic partnerships and foster investments in space, energy, and other emerging technologies.
- Both countries agreed to observe 2025 as a pioneering year for U.S.-India civil space cooperation.
Cooperation in Strategic Mineral
- Both countries launched the Strategic Mineral Recovery initiative to recover and process critical minerals like lithium, rare earth, and cobalt from heavy industries like aluminum, coal mining, and oil and gas.
- This will boost collaboration in the semiconductor industry.
Prime Minister Modi's Meeting with US Government Officials
During his visit to the United States, the Prime Minister met several members of the Donald Trump administration. They are as follows;
- Elon Musk- Head of the U.S. Department of Government Efficiency (DOGE) and CEO of Tesla
- Michael Waltz- U.S. National Security Advisor.
- Tulsi Gabbard-U.S. Director of National Intelligence.
Also Read
List of Military exercise between India and the US
