May 4, 2025 1:00 pm
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Modi’s U.S. Visit: Key Trade and Strategic Issues on the Agenda

New Delhi – Indian Prime Minister Narendra Modi embarks on a pivotal two-day visit to the United States on Wednesday, aiming to enhance trade ties and strategic cooperation with U.S. President Donald Trump. The bilateral meeting comes amidst concerns of potential trade tensions and the need to balance trade imbalances.

Energy Imports

India is set to propose an increase in energy product imports from the United States, which surpassed $11 billion in the first eleven months of 2024. As the world’s fourth-largest importer of liquefied natural gas (LNG), India is keen to purchase more U.S. LNG, especially after the Trump administration lifted export permit bans for new projects. State-run GAIL India Ltd seeks to acquire a stake in a U.S. LNG plant or secure long-term supply deals, according to company chairman Sandeep Gupta.

Defence Imports

Negotiations are expected on the purchase and co-production of combat vehicles, with a focus on finalising a fighter jet engine deal. Talks on co-producing General Dynamics’ Stryker combat vehicles have been ongoing, with Indian officials and Hindustan Aeronautics Ltd (HAL) set to meet U.S. counterparts and General Electric’s aerospace unit in the coming weeks to seal the agreement.

Illegal Migration

The meeting will address the deportation of illegal Indian immigrants by the U.S. administration and India’s concerns about their treatment. Mukesh Agi, president of the US-India Strategic Partnership Forum (USISPF), highlighted efforts to tackle the misuse of H-1B visas while advocating for increased legal migration to meet U.S. professional shortages.

Market Access and Level Playing Field

U.S. officials are expected to push for improved market access and a level playing field for American businesses, citing higher import tariffs on certain goods. Elon Musk is also slated to meet with Modi to discuss Tesla’s entry into the Indian market and fast-tracking the allocation of satellite spectrum for his Starlink project.

Investment by Indian Companies

India will likely propose measures to facilitate investments by Indian firms in the United States, emphasizing their billion-dollar investments in sectors such as steel, garment, and contact manufacturing.

Strengthening Strategic Ties

Indian officials and industry groups are optimistic that Modi’s visit will bolster strategic and economic ties with the United States. New Delhi aims to attract increased investments from U.S. companies in manufacturing and services, including the insurance sector, amidst escalating geopolitical threats from China.

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