PM Narendra Modi and President Donald Trump held a successful summit with key economic and security agreements.
Key Highlights: India-US Summit
- Trade & Energy Deals:
- India to buy more US oil, gas, and military hardware to reduce the trade deficit.
- Trump emphasized reciprocal tariffs on Indian imports.
- Discussions on a mega trade deal to ease trade restrictions.
- Defence Cooperation:
- Expansion of military sales to India worth billions of dollars.
- Plans to provide F-35 stealth fighter jets to India.
- Counterterrorism Efforts:
- US approved the extradition of 26/11 Mumbai attack accused Tahawwur Rana to India.
- India and the US to jointly combat radical Islamic terrorism
- Economic Challenges:
- Trump criticized India’s high import duties on certain US products, calling them unfair.
- Reiterated new reciprocal tariff policies for all US trading partners.
Key Highlights: India-US Trade Relations
- Mission 500: India and the US aim to double bilateral trade to USD 500 billion by 2030.
- Bilateral Trade Agreement (BTA): Plans to negotiate a multi-sector BTA by fall 2025 to lower tariffs and increase market access.
- Senior Representatives: Both sides to designate officials to advance trade negotiations under COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce, and Technology).
- Trade Statistics (2023):
- Total trade: USD 190.08 billion
- Goods trade: USD 123.89 billion (India’s exports: USD 83.77 billion, imports: USD 40.12 billion)
- Services trade: USD 66.19 billion (India’s exports: USD 36.33 billion, imports: USD 29.86 billion)
- Tariff Reductions & Market Access:
- India lowered tariffs on US bourbon, motorcycles, ICT products, and metals.
- US improved access for Indian mangoes and pomegranates.
- Both sides to enhance trade in agriculture, industrial goods, and labour-intensive products.
- Investment & Job Creation:
- Indian companies investing USD 7.35 billion in the US.
- Key projects: Hindalco’s Novelis (Aluminum), JSW (Steel), Epsilon (Battery materials), Jubilant Pharma (Injectables).
- Supporting over 3,000 high-quality jobs in the US.
This summit marked a significant boost in trade, defense, and strategic cooperation between India and the US.
