One of the key items on the table will be tariffs, as Trump is expected to unveil reciprocal tariffs on several countries, including India, ahead of Modi’s visit. India is reducing tariffs on certain US luxury items to address Trump’s concerns over what he called trade imbalances.
In the budget, finance minister Nirmala Sitharaman announced a reduction in customs duties on high-end motorcycles, cars and smartphone parts, benefitting US companies such as Harley-Davidson, Tesla and Apple. She also eliminated customs duty on lithium-ion batteries for electric vehicles.
India is also reviewing tariffs on more than 30 items, including luxury cars and solar cells, as part of its efforts to strengthen economic ties with the US.
The leaders are expected to discuss the issue of illegal Indian immigrants in the US as well.Modi is also expected to advocate expanding the H-1B visa programme for skilled workers, citing that it contributes to the US growth story, even as it has pitted many Trump supporters against the president’s backers in the tech industry, like Musk. The PM and President are expected to issue a joint statement after their meeting in the White House.Trade & Geopolitics
“The Prime Minister will hold a bilateral meeting with President Trump in both the restricted- and delegation-level formats,” foreign secretary Vikram Misri told reporters on Friday. “Senior US administration figures are expected to call on the Prime Minister during the visit. And he will also have an opportunity to interact with business leaders and members of the Indian community.”
New Delhi anticipates “a more intense and continuing discussion on tariffs” during the meeting, Misri said. Trump had once called India a “tremendous tariff maker.”
A ‘limited scope’ or mini trade deal is also on the agenda of Modi’s visit, ET reported last month. Such a deal was mooted during Trump’s first presidency during 2017-21.
Some big corporate houses in India are planning investments across US states. “The India-US relationship is critical not only for both countries, but also for geopolitics and global trade. We are at a pivotal moment in the relationship,” Mukesh Aghi, president and chief executive of US India Strategic Partnership Forum, told ET.
Besides West Asia, Ukraine and the Indo-Pacific region, Modi and Trump are also expected to discuss the situation in Bangladesh where extremists and Islamists have been playing a role in governance structure. There are reports from within the US that the previous administration had allegedly played a role in ousting that nation’s former prime minister, Sheikh Hasina. The Bangladesh situation has a direct bearing on India’s security interests. During Trump 1.0, Modi visited the US twice, in 2017 and 2019.
