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Modi's US Visit: A High-Stakes Push for a Trade Deal and Resolution to Ukraine Crisis

Strategic Insights

— 2 min read

India and the US are racing against time to seal a trade deal, resolve the Ukraine crisis, and schedule a meeting between Prime Minister Narendra Modi and US President Donald Trump, ahead of Modi's visit to the US in the last week of September. The Indian government is closely following the meeting between Trump and Russian President Vladimir Putin on August 15 to discuss a resolution to the war in Ukraine. A resolution to the conflict is in India's interest, sources said, and this has been conveyed to both leaders.

Key Takeaways:

  • India is closely following the meeting between Trump and Putin on August 15 to discuss a resolution to the war in Ukraine.
  • A resolution to the conflict is in India's interest, and this has been conveyed to both leaders.
  • The Indian government is trying to schedule a visit by Prime Minister Narendra Modi to the US in the last week of September to meet US President Donald Trump and iron out issues on trade.
  • The ostensible reason for Modi's visit is to attend the United Nations General Assembly in New York, but a key objective will be to meet Trump and arrive at a common ground on tariffs.
  • The two leaders are expected to announce a trade deal during the visit, but this requires movement on two fronts: the Russia-Ukraine war and the Indo-US trade deal.
  • Negotiations are underway on both fronts, and the stakes for Delhi are high since it has been slapped with 50% tariffs by the US.
  • The US and India have agreed to take an integrated approach to strengthen and deepen bilateral trade across the goods and services sector.
  • The objective is to more than double total bilateral trade to $500 billion by 2030, as decided during Modi's visit to the White House in February.
  • The US and India have agreed to negotiate the first tranche of a mutually beneficial multi-sector Bilateral Trade Agreement (BTA) by fall this year.
  • The BTA aims to increase market access, reduce tariff and non-tariff barriers, and deepen supply chain integration.

Statistics:

  • India has been slapped with 50% tariffs by the US - 25% for high tariffs and 25% penalty for buying Russian oil.
  • The US and India aim to more than double total bilateral trade to $500 billion by 2030.
  • The BTA aims to increase market access, reduce tariff and non-tariff barriers, and deepen supply chain integration.

Sources:

  • The Indian Express (P) Ltd
  • Contify.com
  • The White House (February visit of PM Modi)

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