<p class="bodytext">Prime Minister Narendra Modi spent two days in the United States for his first interaction with the new administration in Washington. Trade and illegal immigration dominated the talks between him and President Donald Trump. Modi had a good rapport with Trump in his first term and the two are even considered friends. But Trump 2.0 is a harsher version with more difficult programmes. Modi was the fourth head of state to visit Washington after Trump took charge. That might show India’s place in the American scheme of things, but what eventually matters is how it all works out. The visit took place when Trump’s announcement about reciprocal tariffs was echoing and a second flight with illegal Indian migrants was getting ready. India had prepared the ground with some duty concessions for American goods. The mutual praise of the two leaders may also have created a feel-good air, which both may have wanted to make use of. </p>.Trump wields the 'big stick' again.<p class="bodytext">The meeting saw a welcome assertion of continuity in relations and a declared intention to expand and deepen the strategic relationship that has evolved over the years. There was a focus on defence, trade and technology partnership, but how it will play out and who will benefit more in these areas will depend on the details. India has a big trade advantage with the US, which Trump obviously wants to reduce. A target has been set to double annual bilateral trade to 500 billion dollars by 2030, and a trade deal is being planned. Expansion of trade is a positive idea for trade partners, but Trump will not at the same time want a doubling of the existing trade gap. India will increase imports of US arms, and the existing restrictions on defence technology transfer to India will <br />be reviewed. Some of the most modern defence equipment such as the stealth F-35 aircraft, which have a high billed price, are on offer. Defence purchases may make up a large part of the planned trade increase. Technology co-operation is also set to improve. The unveiling of a new COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) will facilitate advancement in all areas. India is set to buy more oil from the US and there will be greater cooperation in the nuclear energy sector. </p>.<p class="bodytext">This is an impressive agenda for expansion of trade and mutual relations, but in most areas India is the buyer and the US is the seller. The implications will be clearer when the threatened reciprocal tariff regime, where India is likely to be a major target, comes into force. The visit will certainly be considered fruitful, but the outcomes will be judged better in the weeks ahead. </p>
<p class="bodytext">Prime Minister Narendra Modi spent two days in the United States for his first interaction with the new administration in Washington. Trade and illegal immigration dominated the talks between him and President Donald Trump. Modi had a good rapport with Trump in his first term and the two are even considered friends. But Trump 2.0 is a harsher version with more difficult programmes. Modi was the fourth head of state to visit Washington after Trump took charge. That might show India’s place in the American scheme of things, but what eventually matters is how it all works out. The visit took place when Trump’s announcement about reciprocal tariffs was echoing and a second flight with illegal Indian migrants was getting ready. India had prepared the ground with some duty concessions for American goods. The mutual praise of the two leaders may also have created a feel-good air, which both may have wanted to make use of. </p>.Trump wields the 'big stick' again.<p class="bodytext">The meeting saw a welcome assertion of continuity in relations and a declared intention to expand and deepen the strategic relationship that has evolved over the years. There was a focus on defence, trade and technology partnership, but how it will play out and who will benefit more in these areas will depend on the details. India has a big trade advantage with the US, which Trump obviously wants to reduce. A target has been set to double annual bilateral trade to 500 billion dollars by 2030, and a trade deal is being planned. Expansion of trade is a positive idea for trade partners, but Trump will not at the same time want a doubling of the existing trade gap. India will increase imports of US arms, and the existing restrictions on defence technology transfer to India will <br />be reviewed. Some of the most modern defence equipment such as the stealth F-35 aircraft, which have a high billed price, are on offer. Defence purchases may make up a large part of the planned trade increase. Technology co-operation is also set to improve. The unveiling of a new COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) will facilitate advancement in all areas. India is set to buy more oil from the US and there will be greater cooperation in the nuclear energy sector. </p>.<p class="bodytext">This is an impressive agenda for expansion of trade and mutual relations, but in most areas India is the buyer and the US is the seller. The implications will be clearer when the threatened reciprocal tariff regime, where India is likely to be a major target, comes into force. The visit will certainly be considered fruitful, but the outcomes will be judged better in the weeks ahead. </p>
