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US President Donald Trump has urged Indian Prime Minister Narendra Modi to enhance the purchase of American-manufactured defense equipment, advocating for a recalibration of the trade dynamics between the two nations during a phone conversation on Monday evening.
According to a statement released by the White House following the discussion, Trump highlighted the necessity for India to augment its acquisition of American security products and to strive for a more equitable bilateral trade relationship. The call was characterized by the US as “productive.” During Trump’s initial term, he and Modi developed a strong rapport, with New Delhi serving as a key ally in Washington’s strategy to address the growing assertiveness of Beijing.
During his re-election campaign last year, Trump referred to India as a “very big abuser” in terms of trade, highlighting existing tensions between the two nations. Analysts have identified several points of contention, including the trade deficit, India’s imports of Russian oil, and the migration of Indian nationals to the United States. Rani Mullen, a senior visiting fellow at the Centre for Policy Research in New Delhi, stated that the bilateral relationship is likely to remain robust under a potential second term for Trump, albeit in a transactional manner, where the President may seek certain concessions from India.
The United States ranks as India’s second-largest trading partner, closely following China, with New Delhi reporting a $35 billion trade surplus with Washington from January to November 2024, as per the latest figures from India’s commerce ministry. Trump has also indicated the possibility of imposing tariffs on Brics nations, which include India.
In a recent social media update, Modi referred to Trump as a “dear friend” and expressed their commitment to a partnership based on mutual benefit and trust across various sectors, including security.
Trump subsequently informed reporters that Modi is expected to visit the White House “likely in February,” positioning the Indian leader as one of the initial foreign dignitaries to meet with the US president following his inauguration. Trump’s proposals emerged as India, historically the largest arms importer globally, has been striving to broaden its range of weapons suppliers beyond Russia.
The nation has increasingly turned to the United States, along with other nations such as France, to bridge the gap in military technology and readiness in comparison to its regional competitor, China. Modi has also advocated for the Indian military to bolster domestic arms manufacturers, aligning with his vision for the defense and aviation sectors to transform India into a global manufacturing powerhouse. He has established a goal of achieving $35 billion in domestic defense production by the decade’s end, an increase from nearly $20 billion in the previous year.
Trump and Modi engaged in discussions regarding the enhancement of security cooperation within the Indo-Pacific region, reaffirming their dedication to the Quad, a strategic alliance that includes Japan and Australia, as reported by the White House. India is scheduled to host the leaders of this group later this year.
This conversation coincided with a visit from India’s Foreign Secretary Vikram Misri to Beijing on Tuesday, during which both nations reached a preliminary agreement to resume direct passenger flights for the first time in five years. These routes had been suspended due to the Covid pandemic and remained inactive following severe border clashes in 2020 that strained bilateral relations.
Trump noted that he and Modi also addressed immigration, a key focus for the new US administration, stating that the Indian Prime Minister would “do what’s right” regarding the repatriation of illegal Indian nationals residing in the United States.
According to the Pew Research Center, Indians constituted the third-largest group of unauthorized immigrants in the US in 2022, following Mexico and El Salvador.