How Modi’s Visit Could Be A Game Changer for Trade?

The most awaited meeting between Prime Minister Narendra Modi and US President Donald Trump that took place on February 13, 2025 primarily focused on Trade, Defense ties, AI and space exploration. The key highlights of the meeting were primarily- India-US launch mission 500 for a double bi-lateral trade in 2030, Defense ties, F35 Fighter Jet deal, Space Exploration and AI cooperation.

What is India-US mission 500?

It is an ambitious project chalked out by both the countries with an aim to double the bi-lateral trade between India and the United States to $ billion by 2030. Reports highlighted that Foreign Secretary Vikram Misri emphasized Mission-500, which seeks to elevate bilateral trade to USD 500 billion by 2030. Addressing a press conference, Misri said, “The two leaders have jointly launched the US-India Compact for the 21st Century to foster deeper collaboration in defense, trade, and technology. In the area of trade and investment, Mission-500 has been introduced to more than double total two-way trade to USD 500 billion by 2030.” He further said, “Additionally, the leaders unveiled plans to establish a new 10-year framework for the US-India Major Defence Partnership, spanning from 2025 to 2035.”

The mission focuses on several key areas, including, identifying and eliminating trade barriers to facilitate smoother transactions, promoting investment opportunities, encouraging investments in key sectors such as technology, energy, and manufacturing. Establishing joint working groups to address trade challenges and opportunities, and fostering collaboration in emerging sectors like digital economy and clean energy are also of top focus.

The successful execution of Mission 500 is expected to yield significant benefits, including increased job creation and economic growth in both countries, enhanced technological exchange and innovation, and strengthened geopolitical ties and strategic partnership.

Both leaders acknowledged existing trade tensions and expressed a commitment to resolving them. While President Trump called for the need to reduce the U.S. trade deficit with India by increasing American energy exports, Prime Minister Modi pledged to double bilateral trade by 2030. Both agreed to work towards finalizing segments of a trade deal by fall 2025.

Another important announcement that came was from Trump regarding the extradition of Tahawwur Hussain Rana, implicated in the 2008 Mumbai attacks, to India. Trump expressed willingness to support the extradition. Besides, Prime Minister Modi assured the return of Indian citizens residing illegally in the U.S.

What is the F-35 fighter jet deal?

The F-35 fighterjet deal refers to the procurement of the Lockhead Martin F-35 Lightning II by various countries. The deal involves the purchase of F-35 aircraft, munitions, and related equipment. During their recent meeting, Modi and Trump discussed enhancing defense cooperation between the two nations. Trump announced plans to increase military sales to India, including the potential provision of F-35 stealth fighter jets. These are among the most advanced fighter jets globally featuring stealth capabilities and cutting-edge avionics. If acquired, it would significantly bolster India’s air combat capabilities.

Space Exploration and AI cooperation

Several key announcements were made including the US-India TRUST initiative which is a road map for AI infrastructure, and the INDUS Innovation platform to foster partnerships in defence, space and energy. According to the official statement, the leaders hailed 2025 as a pioneering year for US-India civil space cooperation with plans for a NASA-ISRO effort through AXIOM, to bring the first Indian astronaut to the International space station. It also mentioned a likely early launch of the joint NISAR mission, which will be the first of its kind to systematically map changes to the earth’s surface using dual radars.

Echoing US President Donald Trump’s agenda at the White House, Prime Minister Narendra Modi introduced his vision of Make India Great Again, reiterating his tough stand that just like Trump, New Delhi is also firm on keeping the national interest on the top priority. The statement came when both the world leaders addressed a joint press conference on Thursday Feb 14, after their meeting got concluded in Washington DC.

Lastly, another key highlight was the reciprocal tariffs. Trump recently announced that he proposes to answer foreign import taxes on US goods with rates equal to what each country imposes. Trump has since long been expressing his disappointment over India for its high tariff rate on foreign goods. Reports highlight that on some occasions he even called PM Modi the “king of tariffs”. However, after the meeting, both Trump and Modi announced they would follow up on a strategy for enhancing cooperation on the issue.