Indian Prime Minister Narendra Modi and US President Donald Trump have hailed a new “mega partnership” following a two-day summit that included major trade and diplomatic announcements. The leaders revealed a deal to boost India’s imports of US oil and gas, aiming to address the growing trade deficit between the two countries.
Modi’s visit came shortly after Trump’s warning that all US trade partners, including India, could face reciprocal tariffs. While both leaders praised each other’s leadership, Trump expressed concerns over India’s high trade tariffs, calling them a “big problem.”
In response, Modi signaled his openness to reducing tariffs on US goods, returning undocumented Indian nationals, and purchasing advanced military equipment, including fighter jets, from the US.
During a joint news conference, Modi playfully rephrased Trump’s famous slogan, saying, “It’s Make India Great Again – Miga,” adding, “Maga plus Miga equals a Mega partnership for prosperity.” Trump further emphasized that India would significantly increase purchases of US oil and gas, helping to balance the trade deficit.
Energy cooperation presents a win-win for both nations, as India relies heavily on imported oil. However, experts like Radhika Rao from DBS Bank note that the deal could face challenges, particularly with the cost of US oil, which might rise due to a stronger dollar.
Amitendu Palit from the National University of Singapore also pointed out that India’s trade deficit may not be fully balanced by the oil deal, and potential reciprocal tariffs could pose risks.
In addition to trade, Trump promised increased US military hardware sales to India, including F-35 fighter jets. The leaders also addressed immigration issues, with Trump agreeing to extradite a suspect linked to the 2008 Mumbai terror attacks, and Modi committing to accepting repatriations of illegal Indian immigrants from the US.
Trump’s administration is also reviewing new tariffs on global trade partners, including India, with plans to implement them by April 1. The White House highlighted the stark contrast in trade policies, noting that India’s average tariff on US goods is significantly higher than the US’s tariff rates.
This high-stakes meeting comes amid broader US trade policy changes, including potential tariffs on China, Canada, and Mexico. As Trump ramps up pressure on trading partners, India will need to navigate these challenges while leveraging its growing partnership with the US.
