In a recent phone call between U.S. President Donald Trump and Indian Prime Minister Narendra Modi, the two leaders discussed several key issues aimed at strengthening bilateral relations. This call marked their first official interaction since Trump’s inauguration on January 20, 2025.
Increased Defence Procurement
Trump emphasized the necessity for India to purchase more American-made security equipment. This is seen as a critical component of enhancing defense ties between the two nations. The U.S. has been keen on expanding its defense exports to India, which have already seen significant growth over the past two decades, including a recent deal for Predator drones valued at approximately $4 billion. However, concerns linger regarding India’s ongoing military cooperation with Russia and its procurement from other non-U.S. partners like France and Israel.
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Fair Trade Relations
Another focal point of the conversation was the need for a “fair” bilateral trading relationship. Trump has previously criticized India’s trade practices, labeling it a “tariff king” due to high tariffs on U.S. imports compared to those imposed by the U.S. on Indian goods. The trade deficit has been a contentious issue, with India’s exports to the U.S. significantly outpacing imports. The leaders discussed potential measures to address these trade imbalances, including India’s willingness to reduce tariffs in specific sectors and increase energy purchases from the U.S.
The call also included plans for Modi’s potential visit to Washington in February, where both leaders hope to further solidify their partnership. This visit is particularly significant as India prepares to host the Quad Leaders’ Summit later this year, which includes discussions on regional security in the Indo-Pacific—a topic that was highlighted during their conversation.
Conclusion
The dialogue between Trump and Modi underscores a mutual commitment to enhancing strategic cooperation across various sectors, including defence and trade. Both leaders expressed optimism about advancing their countries’ partnership while addressing existing challenges related to trade practices and defence procurement strategies.
Agencies
