Mint Primer: How significant is Prime Minister Narendra Modi’s US Visit?

Why PM Modi’s US visit could not have been timed better?

Modi will be one of the earliest world leaders to call on President Trump in his second term. His visit to the US, which follows that of Israeli Prime Minister Benjamin Netanyahu and the Japanese Prime Minister Shigeru Ishiba, reflects the growing stature of the Indo-US relationship. The visit will also give Modi an opportunity to explain the recent efforts India has taken to reduce import duties on products that the US exports and further plans to cut the trade deficit through defence and energy deals. By doing so, he could thwart reciprocal duties that Trump plans to levy on countries including India.

So, will trade be high on the agenda?

Yes. Though Trump has called India ‘a tremendous tariff maker’, he has so far refrained from imposing any tariffs. India has also been pre-emptively cutting back duties on imports. 

The Union Budget 2025-26 saw a reduction in customs duties on high-end motorcycles, lithium-ion batteries for electric vehicles, and equipment used for manufacturing mobile phone batteries. They will benefit the likes of Harley-Davidson Inc., Tesla Inc. and Apple Inc. The Indian government is also reviewing import tariffs on 30 other items. Modi will also be keen to restart discussion on a limited trade agreement that was close to fruition during Trump’s first term.

What about immigration?

It will be discussed, too. Modi would like to impress on Trump the need to expand the H-1B visa programme used extensively by Indian software companies. Though Trump’s supporters are divided about its continuation, the US president has supported it for sourcing skilled talent. While India is taking back illegal immigrants from the US, the sight of them being transported shackled in chains created an uproar. Modi could seek a more humane treatment.

Will defence procurement be discussed, too?

Since 2008, India has procured defence equipment worth $20 billion from the US, including C-130J and C-17 transport aircraft and Apache and Chinook helicopters.

It is part of a conscious move to reduce its reliance on Russia and expand its defence procurement to other nations. India is looking to buy 31 drones, and a global tender is out for 114 fighter aircraft. It also needs more transport and reconnaissance aircraft apart from infantry vehicles. The Indian government would want to buy some of these from the US as it would significantly help bridge the trade deficit.

Is a new era in energy cooperation in the offing?

India is banking on nuclear energy to reduce its dependence on fossil fuels and has set a target of 100GW of nuclear power (currently 8GW) by 2047. To make this a reality, it recently announced plans to modify its nuclear laws to make it attractive for US companies to supply large-scale nuclear reactors to India. 

The Indian government is also keen on strengthening its partnership with the US in advanced nuclear technologies, including the development of small modular nuclear reactors. During this visit, India is expected to have a substantive discussion on nuclear energy cooperation.