Feb 15, 2025 07:10 IST
First published on: Feb 15, 2025 at 07:10 IST
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During Prime Minister Narendra Modi’s visit to Washington, India and the United States established an ambitious agenda to deepen their bilateral strategic partnership. Trump’s emphasis on reducing the trade deficit — now favouring India — and the swift repatriation of illegal immigrants from India had cast a shadow over the relationship. But Thursday’s summit signalled the determination to reduce differences and deepen the agenda of cooperation. The unveiling of a new COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) is likely to become the foundation for a high-quality relationship between the two nations. For India, the challenge lies in translating the “result-driven agenda” articulated by Modi and Trump into tangible outcomes. With Trump expected to visit India later this year, Modi’s diplomatic agility in responding to significant shifts in US domestic and foreign policy must now be matched by proactive measures from various ministries.
Modi and Trump exhibited finesse in addressing the issue of illegal immigration. India agreed to repatriate verified illegal immigrants from the US, while Washington is now prepared to collaborate with Delhi to combat human trafficking by targeting criminal networks and facilitators. On the topic of legal immigration — an area of intense debate among Trump’s supporters — the leaders acknowledged the globalised nature of today’s workforce and the importance of facilitating the legal and sustainable mobility of skilled Indian professionals, students and businesspeople into the US. Trade relations also took centrestage, with Trump demanding urgent action to improve market access for US goods in India. His criticism of India’s “abuse of tariffs” reflects a broader critique of the global trading system, where other nations benefit from America’s open market while restricting access to US products and services. As Trump prepares to impose reciprocal tariffs by spring, he has provided India with the opportunity to negotiate a “fair trade” arrangement in the coming months. The two nations have set an ambitious target of achieving $500 billion in annual bilateral trade by 2030, necessitating a comprehensive reevaluation of India’s trade strategy — a need that has become increasingly urgent amid a slowdown in India’s external trade and rising complaints from trade partners regarding its protectionist policies.
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In contrast to the challenges surrounding immigration and trade, Modi and Trump found opportunities to enhance bilateral ties. For instance, in the energy sector, India, a major importer of hydrocarbons, is poised to benefit from the US as a significant exporter. Both countries have agreed to strengthen cooperation in the nuclear energy sector, which is experiencing a revival. On defence, India is prepared to increase imports of US arms, and Trump is ready to review existing restrictions on defence technology transfers to India. The leaders also committed to expanding their technological cooperation to emerging areas such as Artificial Intelligence. In terms of regional security, they agreed to enhance their engagement in the Indo-Pacific and broaden their focus in the Middle East. The potential for a new strategic compact between the two nations is underpinned by the convergence of Modi’s “India First” policies and Trump’s “America First” approach. With a heightened emphasis on self-interest and a flair for deal-making, Modi and Trump may have set India and the US on a promising path.
