Trump and Modi
They have met
Thursday, February 13th, US President Donald Trump met Hindu Prime Minister Nareendra Modi. They talked about India’s nuclear industry.
They met at the White House. Prior to meeting with Trump, Modi sat down with national security advisor Mike Waltz, and Elon Musk.
“This will take safe, clean and affordable electricity to millions of Indians and tenths of thousands of millions of dollars to the American civil nuclear American industry”,
Source: Entre Guerras
The Indian PM talked about increasing cooperation on small modular reactors. According to the Atomic Energy International Organization, these can produce big amounts of electricity with low carbon emissions. They also agreed to negotiate and rebalance their trade balance.
“Today, American trade deficit with India is almost 100.000 million USD, and Prime Minister Modi and I have agreed to start negotiations to approach this long standing disparity that should have been addressed in the last four years”,
Modi added that their teams would work to reach a benefic trade agreement. He adapted the Trump slogan, “Make America Great Again”.
“It’s Make India Great Again – Miga”,
Trump also announced that the US would extradite Tahawwur Rana to India. Rana is a Pakistani-canadian businessman accused of collaborating with the 2008 Mumbai attacks. Trump mentioned he wouldn’t spare India from higher tariffs he would impose on his trade partners. This in order to match Indian imposed tariffs on the US
Source: Entre Guerras
Modi hailed a “mega partnership” with the US. Both rulers agreed on a deal for India to import more American oil and gas. Modi promised to buy more US oil and gas, as well as military equipment, and fight illegal immigration.
Modi stated that Indian people were focusing on their heritage and ways to ensure his nation develops by 2047.
Before his meeting with Modi, Trump ordered his advisors to calculate tariffs on US trading partners. The tariffs could start on April 1. India and the US have a trade deficit of 50 billon USD in India’s favor. Indo-US goods trades and services totaled around 190.1 billion in 2023. According to India’s external ministry, US exports to India were worth nearly 70 billion and imports were 120 billion.
Last week, the US deported on a military plane 104 Indians accused of being illegal immigrants. Indians are one of the largest populations of undocumented immigrants in the US. They hold the majority of H-1B visas, a program banned on Trump’s first term. Relations between India and the West strained when Modi refused to condemn Russia’s invasion of Ukraine in 2022. Modi is the fourth foreign leader to visit Trump since he returned to the white house. This after Benjamin Netanyahu of Israel, Ishiba of Japan, and Jordanian King Abdullah II.
Donald Trump and Narendra Modi had a phone call last January 27th. Back then, it had already been agreed that they would include in their conversations a major exchange on technology, energy and defense, among others. They agreed to deepen security cooperation in the Indo Pacific, cooperating against China. They also agreed to start joint production on technologies like artificial intelligence.
Modi aims to soften trade barriers. He said he was open to reduce tariffs on US goods, repatriating undocumented Indian nationals, and buying US military jets. India relies on importing oil from multiple countries. Thus, reaching a deal with the US is an easy choice for India. The US is India’s export market for Indian goods. Modi aims to reduce US tariffs, and improve relations with the US and the West. US oil and gas would be more expensive due a strong US dollar currency. India will have a challenge in balancing its own trade deficit thus. Trump acknowledges the risks of tariffs, but he thinks they are worth because he bets that American manufacturing would be boosted. Also, jobs would increase.
An increase on cooperation regarding immigration, artificial intelligence and military affairs is expected between India and the US. How the trade balance will result, it remains to be seen. It also is worth to be observed the Indian nuclear industry after all this.
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Narendra Modi visited the US last Thursday. He talked with President Trump about tariffs, nuclear reactors, immigration, and artificial intelligence.
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