The BGA India Team‘s Non-Executive Chairman Amb. Alok Prasad, wrote an update to clients on Indian Prime Minister Narendra Modi’s meeting with U.S. President Donald Trump.

Context

  • Prime Minister Narendra Modi held key bilateral trade and strategic discussions with Donald Trump on February 13, making the Indian leader one of the first world leaders to meet the new U.S. president. Modi’s visit also saw key Trump administration officials including Director of National Intelligence Tulsi Gabbard and National Security Advisor Mike Waltz, known for advocating closer ties with India, call on him.  
  • Modi’s visit underscored that the U.S. relationship with India is experiencing a remarkable degree of continuity despite the global uncertainty created early in Trump’s second term and misgivings in some circles about the impact of Trump’s aggressive transactional style. Key pillars of the U.S.-India bilateral strategic, technology and defense partnership continue to be endorsed by the Trump administration.     

Significance

  • Despite tough negotiations expected to follow on reducing tariffs and trade barriers, India may get some relaxations or waivers from U.S. reciprocal tariffs as both sides work towards finalizing a multi-sector trade deal. India will also likely use this opportunity to push the domestic manufacturing landscape toward becoming more competitive by addressing regulatory and compliance challenges.  
  • While India remains a critical partner to the United States in the Indo-Pacific with both countries having shared economic and security concerns about China, the visit underscored strengthening of Indo-U.S. bilateral relations for their intrinsic value and potential. With the launch of the U.S.- India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st century, the priorities of bilateral relations over the next four years will include trade and investment deals, energy and defense procurement, collaboration on technology and innovation as well as multilateral cooperation on newer trade routes and investment groupings.  

Implications

  • The two leaders maintained continuity of their partnership on critical and emerging technologies through the U.S.-India TRUST (“Transforming the Relationship Utilizing Strategic Technology”) initiative, which will replace U.S.-India Initiative on Critical and Emerging Technology. TRUST will catalyze cooperation between all stakeholders on artificial intelligence (AI), defense, semiconductors, quantum computing, biotechnology, energy and space. Supply chain resilience for critical minerals through Strategic Mineral Recovery initiative—encompassing the exploration, processing and recycling—also emerged as an important area of cooperation.
  • U.S. companies interested in increasing investment and market access in India should closely follow upcoming developments and leverage the coming months to engage policymakers on specific issues. Specific commercial opportunities in India to watch for include oil and gas deals, investment in nuclear energy, artificial intelligence and collaboration across key technology areas including advanced materials, electric vehicles, semiconductors, biotechnology and space. 

We will continue to keep you updated on developments in India as they occur. If you have any questions or comments, please contact BGA Non-Executive Chairman Amb. Alok Prasad at aprasad@bowergroupasia.com.

Best regards,

BGA India Team

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Non-Executive Chairman

Alok is one of India’s most respected foreign policy, national security and international relations experts. Based in New Delhi, he maintains unparalleled networks in India’s government and civil service, business, civil society and diplomatic circles. Working with the BGA India team, he guides the development of client strategies and directs their implementation as non-executive chairman. Alok retired from government service in 2012 as India’s ambassador to Japan, where he led the mission during the negotiation and signing of the India–Japan Comprehensive Economic Partnership Agreement. He lived in Japan through the tsunami and the Fukushima nuclear disaster. Prior to his post ... Read More