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Modi’s visit delivered agreements on defence, AI, and trade, with Rana’s extradition approval a key counterterrorism win. However, deeper security cooperation and a balanced AI partnership remain critical for India
PM Modi with President Donald Trump at the White House in US. Image/PMO
Prime Minister Narendra Modi’s recent visit to the United States marked another step in the Indo-US relationship. This trip resulted in agreements covering defence, artificial intelligence (AI), trade, and counterterrorism, reflecting strategic convergence between the two nations. The bonhomie (dil) between Prime Minister Modi and President Donald Trump is well-known and was visible during the trip.
The takeaway from the trip will be analysed deeply internally within the government and outside too. As several new alignments have taken place, this visit was in a way to understand them much better.
One of the key takeaways from the visit was an agreement to enhance defence cooperation, including discussions on F-35 fighter jets. This deal highlights India’s efforts to modernise its defence capabilities and deepen strategic ties with the US.
However, buying an expensive fighter plane takes years to materialise. The F-35, being a sophisticated fighter jet, requires extensive discussions, technology transfers, and logistical planning before deployment. This is not a supermarket purchase; it’s more like custom-ordering a luxury car where every component has to be negotiated and delivered under strict security protocols. Nevertheless, this agreement sets the stage for a more advanced partnership.
Artificial intelligence was another central point of discussion, but the partnership appears tilted in favour of the US. While diplomatic statements emphasised cooperation, the US views AI as a strategic asset, as US Vice President JD Vance noted during the Paris AI summit.
For India, the AI partnership may offer opportunities. Still, without some means to control its data from global AI engines, India will become a supplier of resources to global AI engines instead of driving it for the public good. The current agreement is just diplomatic speak and it serves American interests more than anything else.
The US aims to maintain technological supremacy, ensuring AI breakthroughs benefit its economy and security. It’s akin to being invited to a lavish dinner only to find that you’re expected to bring the best dish while others feast on it. India must ensure that its AI ecosystem does not become dependent on foreign interests.
Trade discussions were another key aspect of Modi’s visit. Both sides committed to doubling bilateral trade to $500 billion by 2030. However, Trump uses high tariff threats as a negotiation tactic without implementing them, following the same pattern before Modi’s visit.
On the other hand, former President Joe Biden had avoided trade discussions with India. This silence was not accidental—it reflects a broader strategy. Biden’s administration prioritised defence and technological collaboration over contentious trade issues, opting to sidestep potential disputes that could disrupt diplomatic goodwill.
Trump, in contrast, treats trade as the cornerstone of all bilateral discussions, regardless of the country involved. For him, international diplomacy operates like a high-stakes business deal, where threats of tariffs function as leverage rather than actual policy. He views trade imbalances as a personal affront, using them as bargaining chips to pressure nations into favourable agreements. His approach is unapologetically transactional—if there’s a deal to be made, he wants to be at the table dictating the terms.
A prime example is Harley-Davidson motorcycles. Once central to trade disputes, Harley’s relevance in India has declined as it now sells bikes through the Hero Group. The company’s struggles in India were not about high pricing due to import tariffs but a product-market mismatch. Indian consumers prioritise durability, as the Tata Nano experiment demonstrated, so even reduced import duties on Harley bikes would have minimal market impact. Indo-US trade relations are shaped more by industrial and investment considerations than symbolic tariff battles.
One of the major developments during the visit was the approval of the extradition of Tahawwur Rana, a suspect in the 2008 Mumbai attacks. This move strengthens counterterrorism cooperation between the two nations. India has long sought the extradition of those involved in terrorist activities, and this decision marks a step toward justice.
While extraditing a terrorist makes headlines, it is just one case. A more impactful counterterrorism strategy would involve disrupting the financial networks that sustain terrorist organisations and drug cartels. It’s the difference between cutting off a single branch versus uprooting the entire tree. Cutting off financial resources weakens their ability to operate. Strengthening intelligence-sharing and financial tracking mechanisms should be a priority for both nations.
The US, under Obama, rarely discussed terrorism with India in any meaningful way beyond platitudes. His administration focused more on relations with Pakistan and broader Middle Eastern conflicts. Unlike Trump, Obama’s approach often placed India’s security concerns in the background. However, times may change, and this renewed focus on counterterrorism cooperation signals a shift in alignment that must be emphasised in the future.
PM Modi’s visit to the US marked another milestone in the Indo-US ties. The agreements on defence, AI, and trade, along with enhanced counterterrorism cooperation, underscore the growing alignment of interests. While challenges remain in implementation, the trajectory of the relationship is positive.
The visit laid the foundation for future engagements, with defence collaborations strengthening, AI partnerships evolving, and trade negotiations continuing strategically. Trump, ever the businessman, will ensure that American interests remain central, but India, under Modi’s leadership, is adept at navigating these diplomatic waters.
K Yatish Rajawat is a public policy researcher and works at the Gurgaon-based think and do tank Centre for Innovation in Public Policy (CIPP). Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect News18’s views.
