Trade, tariffs, and visas will be key topics during Trump-Modi discussions
As Indian Prime Minister Narendra Modi visits Washington this week to meet with President Donald Trump, the encounter will likely include some friendly exchanges and laughter. However, there is more to their meeting than just pleasantries.
Over the years, Trump and Modi have established a strong personal connection, characterized by significant meetings and collaborative events.
Since their initial encounter in Washington back in 2017, their relationship has grown stronger through various occasions, including major rallies in Houston and Ahmedabad. Their compatibility arises from similar views and political goals, particularly their joint aim of addressing China's influence, which has further solidified the wider US-India alliance.
It is noteworthy that while Trump has been critical of India on multiple occasions, he has never directed any criticism at Modi.
During Modi's trip, it is expected that both leaders will dedicate time to outlining future actions regarding the US-India strategic relationship, which is currently robust.
Modi is also anticipated to engage with various members of Trump’s cabinet, US business figures, and individuals from the Indian-American community.
There’s a possibility he might meet with Elon Musk, the head of SpaceX and Tesla. Modi, eager to expand India's emerging electric vehicle market, would welcome Musk’s establishment of a Tesla production facility in India.
Nevertheless, the apparent camaraderie and discussions about a strategic alliance could obscure a more serious aspect: during Modi's stay, the transactional nature of their relationship may become glaringly apparent, with both leaders, particularly Trump, equipped with numerous demands.
India is well-acquainted with Trump. Many of Modi's current ministers had roles during his last term, which overlapped with the earlier Trump presidency. This connection has been evident since Trump’s inauguration last month; India has indicated its readiness to decrease tariffs, repatriate undocumented Indian immigrants, and purchase American oil.
They have already reduced certain tariffs and brought back 104 undocumented Indian nationals, with the first flight returning to India last week. These proactive measures aim to deter Trump from making specific demands and to lower the chances of friction with the new Trump administration.
Nonetheless, Trump may urge Modi to implement further tariff reductions to address the escalating US trade deficit with India, which has neared $46 billion (£37.10 billion) in recent years. However, a potential challenge could become a chance: Modi might suggest to Trump the initiation of bilateral discussions aimed at an economic partnership agreement designed to lower tariffs on both ends.
In recent times, India has demonstrated increased readiness to engage in trade agreements. The Trump administration might be a more accommodating partner compared to the Biden administration, which has set strict environmental and labor-related requirements for new trade pacts.
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