PM Modi and US President Donald Trump Strengthen US-India Relations with Major Agreements on Defence, Trade, Technology, and Energy

Prime Minister Narendra Modi and US President Donald Trump met at the White House, reaffirming their commitment to strengthening bilateral ties across key sectors. The talks, which followed Modi’s visit to France, came shortly after Trump announced a new reciprocal tariff policy affecting US trading partners, including India.

Key Highlights of the Meeting:

COMPACT Framework Launch: The two leaders launched the COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology for the 21st Century), a new initiative designed to enhance cooperation in defence, trade, and technology.

Defence Cooperation Boosted: The US and India agreed to a ten-year framework for the US-India Major Defence Partnership. This includes expanded defence collaboration, new deals for Javelin anti-tank missiles, Stryker armoured vehicles, and additional P8I maritime surveillance aircraft. They also discussed streamlining technology transfers and advancing joint projects in space, missile defense, and underwater security. The Autonomous Systems Industry Alliance (ASIA) was launched to co-develop sensitive technologies like underwater domain awareness (UDA).

Trade Goals Set for 2030: Modi and Trump unveiled Mission 500, aiming to increase bilateral trade to $500 billion by 2030. The two leaders outlined plans for a Bilateral Trade Agreement (BTA) by 2025 to address trade barriers and include provisions on reciprocal tariffs. Modi highlighted India’s $7.35 billion in investments in the US, which support over 3,000 jobs.

Technology and Innovation Focus: A series of initiatives were introduced, including the TRUST (Transforming the Relationship Utilizing Strategic Technology) Initiative and a roadmap for US-India cooperation in artificial intelligence (AI). The two countries also committed to enhancing research collaboration with the establishment of an MoU between the US National Science Foundation (NSF) and India’s Anusandhan National Research Foundation (ANRF).

Energy Cooperation and Migration Agreements: The leaders reaffirmed their commitment to the India-US Energy Security Partnership. This includes discussions on India’s full membership in the International Energy Agency (IEA) and advancing the US-India 123 Civil Nuclear Agreement. The two countries also committed to expanding clean energy through the development of small modular nuclear reactors.

On migration, the leaders emphasized enhancing academic collaboration and mobility, acknowledging the significant contribution of the 300,000-strong Indian student community in the US, which adds $8 billion to the American economy annually.

Global and Counterterrorism Cooperation: Both countries reiterated their commitment to counterterrorism efforts, particularly in condemning Pakistan’s failure to act against terror groups. President Trump announced the approval of the extradition of Tahawwur Rana, a convict in the 26/11 Mumbai attacks, to India. The two leaders also highlighted the strengthening of the Quad Alliance (India, US, Japan, Australia) and the launch of new economic and security forums like the Indian Ocean Strategic Venture and a 50,000 km undersea cable project by Meta.​