To avoid getting into a trade conflict, Prime Minister Narendra Modi is expected to offer US President Donald Trump tariff concession on many products
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Prime Minister Narendra Modi is expected to meet US President Donald Trump with ‘gifts’ to his liking.
As Trump has made it clear, he sees the world in terms of trade. Wherever he feels the United States is being treated unfairly, he imposes tariffs. To avoid tariffs on India, Modi is expected to present a slew of tariff concessions along with defence purchases to sweeten the deal.
The groundwork was prepared in the Union Budget 2025-26 in which Finance Minister Nirmala Sitharaman proposed to remove seven tariff rates, which would mean that only eight rates would remain; to ensure that only one cess or surcharge to be imposed; to exempt Social Welfare Surcharge on 82 tariff lines subjected to a cess.
In addition to tariff concessions, Modi is expected to make a push for the purchase of engines for fighter planes and combat vehicles for the military. He is also expected to offer to increase energy imports from the United States.
Modi to offer tariff concessions
Modi is expected to inform Trump about cuts in tariffs in at least a dozen sectors, such as electronics, medical and surgical equipment, and chemicals, according to Reuters.
Modi is also expected to tell Trump about increasing imports of liquefied natural gas (LNG and agriculture, as per the news agency.
It further reported that Modi is also expected to offer investment in nuclear energy sector.
Modi is expected to push for the purchase of General Electric’s GE-414 engines used in fighter planes and a purchase and co-production deal for hundreds of Stryker combat vehicles for the military. The deal for GE engines was signed in 2023 but the delivery has been delayed. The delay has been said to be rooted in supply-chain issues.
Even though Trump has not explicitly named India since assuming office, he has previously slammed the country as a “big abuser” of trade. The Modi government is therefore taking proactive steps to avoid a tariff war.
