1 week ago
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Indian Prime Minister Narendra Modi is preparing to meet US President Donald Trump on Thursday, offering tariff reductions, business deals, and potential cooperation on China in an effort to strengthen ties and avoid trade tensions.
Trump, who has aggressively used tariffs as leverage in trade negotiations, has previously criticised India’s trade policies, calling the country a “very big abuser.” His administration’s steel and aluminium levies have impacted India significantly, making Modi’s concessions particularly strategic.
Ahead of their White House meeting, Modi is set to present a package that includes increased purchases of US liquefied natural gas, combat vehicles, and jet engines, according to Indian government officials. The Indian delegation is also exploring trade negotiations related to US agricultural exports, nuclear energy investments, and tariff reductions in sectors such as electronics, medical equipment, and chemicals—areas the Trump administration has flagged as needing improvement.
A source familiar with the negotiations described Modi’s proposals as a “gift” to Trump, aimed at easing tensions and securing economic cooperation. However, beyond trade, Modi is also expected to raise concerns about the US Justice Department’s indictment of Indian billionaire Gautam Adani, a close ally of his, over alleged bribery. Adani has denied any wrongdoing.
Their discussions are likely to be overshadowed by recent allegations that Indian intelligence plotted to assassinate a Sikh activist in the US during the Biden administration. While not officially on the agenda, the controversy looms over the meeting as a diplomatic challenge.
Richard Rossow, an expert on US-India relations at the Center for Strategic and International Studies, predicts a tough negotiation. “It’s going to be a boxing match,” he said. “India is willing to take a few hits, but there’s a limit.”
The US currently has a $45.6 billion trade deficit with India, with Washington imposing an average tariff of 2.2%, compared to India’s 12% rate. Trump’s administration has vowed to implement reciprocal tariffs against countries that impose higher duties on US goods, increasing concerns about a potential global trade war.
In addition to trade, Trump is seeking greater assistance from India on immigration enforcement. The country is a major source of migrants to the US, particularly in the technology sector, where many work on visas, while others remain undocumented.
Modi’s visit will also include a one-on-one meeting with billionaire Elon Musk, according to sources familiar with the trip. Musk, a key Trump ally, may discuss potential Indian market entry plans for his company, Starlink.
Beyond economic discussions, India’s role in countering China is expected to be a key theme in the talks. Trump’s administration views China as its top strategic rival, and India’s own tensions with Beijing make it a potential ally in Washington’s broader containment efforts. However, analysts note that India prefers to maintain “strategic ambiguity,” balancing its ties with global powers rather than taking a hard stance against China.
India’s neutral approach extends to its relationship with Russia, as it continues to purchase Russian energy despite Western sanctions following Moscow’s invasion of Ukraine. While the US has pushed allies to cut ties with Russia, India has maintained its economic partnerships, reinforcing its independent foreign policy stance.
Despite these complexities, Modi and Trump are expected to focus on strengthening economic ties while navigating the broader geopolitical challenges shaping their relationship.
Faridah Abdulkadiri
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