Sunday, February 16, 2025 | Washington D.C.
USISPF congratulates Prime Minister Narendra Modi and President Donald J Trump for the substantive outcomes achieved in their first meeting in President Trump’s second term. Prime Minister Modi is the fourth world leader that President Trump met in his first month in office, which showcases the importance and heft of the bilateral relationship.
Prime Minister Modi traveled to Washington, DC, from Paris, where he was co-hosting the AI summit with President Macron. The trip was less than 30 hours and saw substantive outcomes, with both leaders reaffirming the enduring strategic and economic partnership between the United States and India in defense, trade, energy, countering terrorism, and strengthening people-to-people ties.
Reaffirming the U.S.-India Trade and Economic Partnership
The joint statement’s most substantive development is the commitment to negotiating the first tranche of a Bilateral Trade Agreement (BTA) by Fall 2025 and announcing “Mission 500,” an ambitious initiative to increase U.S.-India bilateral trade to $500 billion by 2030.
The agreement will adopt a broad-based approach, including both goods and services, marking a shift toward a more balanced trade partnership. The US and India will focus on reducing trade barriers to enhance predictability for businesses. Additionally, its alignment with the COMPACT framework signals a rules-based structure that promotes transparency, stability, and sustained economic engagement between the two economies.
The leaders’ recognition of India’s tariff reductions on bourbon, motorcycles, ICT products, and metals, along with increased US agricultural exports like alfalfa hay and duck meat, marks a positive step. Likewise, India’s appreciation of US measures to facilitate mango and pomegranate exports highlights a focus on mutual concessions.
Coincidentally, earlier in the day, President Donald Trump signed a Presidential Memorandum, “Reciprocal Trade and Tariffs,” initiating the “Fair and Reciprocal Plan.” The memorandum emphasizes the need to address trade imbalances resulting from unfair practices, including higher tariffs, non-tariff barriers, and other policies that disadvantage US businesses. While it does not impose immediate tariffs, the directive sets a framework for potential future actions to align US tariffs with those of its trading partners. The new tariffs could be as early as April 02, focusing first on countries with significant trade surpluses with the US or notable issues.
Defense and Security: Strengthening Military Cooperation
In his first term, President Trump prioritized safeguarding a free and open Indo-Pacific. Building on an already strong foundation of defense initiatives, both leaders introduced the “U.S.-India COMPACT” (Catalyzing Opportunities for Military Partnerships and Cooperation in Advanced Technologies), with the objective to enhance defense collaboration and drive technological innovation between the two nations.
Both leaders have prioritized the defense relationship, with President Trump applauding the increase in military sales to India, with a long-term vision to strengthen India’s defense capabilities. In line with military sales, Washington will also provide India with F-35 fighter jets, along with C‑130J Super Hercules, C‑17 Globemaster III, P‑8I Poseidon aircraft; CH‑47F Chinooks, MH‑60R Seahawks, and AH‑64E Apaches; Harpoon anti-ship missiles; M777 howitzers and MQ‑9Bs. Discussions also include new procurements and co-production agreements for Javelin Anti-Tank Guided Missiles and Stryker Infantry Combat Vehicles, along with the acquisition of six additional P-8I Maritime Patrol Aircraft, further strengthening India’s defense capabilities.
Emerging Technologies and Supply Chain Resilience
Beyond defense and trade, Prime Minister Modi highlighted the significance of cooperation in emerging technologies, particularly in artificial intelligence and semiconductor development. The leaders unveiled the U.S.-India TRUST (“Transforming the Relationship Utilizing Strategic Technology”) initiative, a key priority under INDUS-X. The launch of INDUS Innovation, an innovation bridge mirroring the INDUS-X platform, will further enhance the defense collaboration through technology and the private sector. Through the priorities of strengthening the Quad, I2U2, and IMEC, both leaders have reiterated their commitment to rejigging resilient supply chains for strategic minerals. Both countries will work to develop research and develop and promote investments across critical mineral value chains through the Mineral Security Partnership. The launch of the new Strategic Mineral Recovery initiative will boost the recovery and processing of critical minerals (including lithium, cobalt, and rare earth) from heavy industries along the lines of aluminum, coal mining, and oil and gas.
Energy Security: A Pillar of Economic Cooperation
Energy security emerged as a vital pillar of the strengthened partnership. The two leaders will collaborate across the spectrum of energy sources, touching on oil, gas, and civil nuclear. Key objectives include enhancing hydrocarbon production, expanding strategic petroleum reserves, and securing US support for India’s full membership in the International Energy Agency (IEA). The US aims to solidify its position as a leading supplier of crude oil, petroleum products, and LNG to India, accompanied by increased investment in oil and gas infrastructure to facilitate these exports.
We anticipate the advancement of the US-India 123 Civil Nuclear Agreement, including plans to develop advanced small modular reactors in India, which will boost technology transfer and substantial localization.
Counterterrorism and Security Cooperation
One of the biggest and least expected wins is the approval to extradite Tahawwur Rana, a convicted felon in US custody and one of the masterminds of the 26/11 dastardly attacks on Mumbai: thus showing the joint commitment to zero tolerance for terror and counter-terrorism cooperation among like-minded partners.
Strengthening People-to-People Ties
Prime Minister Modi and President Trump reaffirmed the secret sauce of the relationship by strengthening people-to-people ties through educational exchanges, promoting tourism, and combating illegal immigration and drug trafficking across borders.
Looking Ahead: A Pivotal Year for U.S.-India Relations
2025 will be a landmark year, with India set to host the upcoming Quad Leaders’ Summit. Prime Minister Modi extended an invitation and looks forward to welcoming President Trump to India, who last visited the country in early 2020, just prior to the pandemic.
As leaders of the two largest democracies, they expressed confidence in finding mutually beneficial solutions that support long-term economic growth. The meeting reaffirmed the strength of the U.S.-India partnership, grounded in shared democratic values, deepening economic collaboration, and a commitment to regional and global security in securing a free and prosperous Indo-Pacific.
As we hit the 25th year of the new century, the outlook on U.S.-India relations remains bright, marked by deepening strategic ties and shared aspirations for global stability and prosperity.
For additional information, please contact:
Ankit Jain
[email protected]
Akshobh Giridharadas
[email protected]
About the US-India Strategic Partnership Forum (USISPF):
The US-India Strategic Partnership Forum (USISPF) is committed to creating the most powerful partnership between the United States and India. As the only independent not-for-profit institution dedicated to strengthening the U.S.-India partnership in Washington, D.C., and in New Delhi, USISPF is the trusted partner for businesses, non-profit organizations, the diaspora, and the governments of India and the United States.
