PM Modi Praises US-India 'Mega-Partnership' During Meeting with Trump

HIGHLIGHTS:

• Modi and Trump discussed increasing US oil and gas exports to India, aiming to reduce the trade deficit, with India purchasing more energy from the US.
• The leaders agreed on boosting US military sales to India, including F-35 jets, and addressing immigration issues, including the extradition of a key suspect in the 2008 Mumbai attacks.
• While Trump criticized India's high tariffs, Modi offered to lower them, facilitate the return of illegal Indian nationals, and ease trade barriers to foster stronger economic ties.

During his visit of two days, Indian Prime Minister Narendra Modi hailed the "mega partnership" between the US and India in the wake of a meeting in which he and US President Donald Trump agreed on an arrangement for India to buy increased amounts of US oil and gas to help ease the trade deficit between the two nations.

Modi's visit comes at a time when Trump has imposed blanket reciprocal tariffs on all of the US's trading partners, including India, during the past few months.

While both leaders paid compliment to each other's leadership, Trump went on to criticize India for imposing huge trade tariffs, calling it "a big problem" in terms of trade."

Modi, on the other hand, while trying to lay the ground for an easing of the threatened trade barriers, offered to lower tariffs on US goods, accept the return of illegal Indian nationals, and buy US military fighter jets.

During a joint news conference, Modi made multiple references to Trump's "Make America Great Again" slogan, adding his own twist: "It's Make India Great Again – MIGA," Modi said.

"Maga plus Miga...[is a] mega partnership for prosperity".

Trump also mentioned that India would be "buying a significant amount of our oil and gas" as part of efforts to reduce the trade deficit between the two nations.

"They need it. And we have it," Trump said.

According to Radhika Rao, a senior economist at DBS Bank in Singapore, the energy deal with the US "offers a relatively easy opportunity for both sides," given that India is already dependent on imported oil from various countries.

"The US is the largest export market for India's goods and services, which underscores the administration's willingness to pre-emptively smoothen trade relations and offer concessions to narrow the bilateral trade deficit that the US runs with India," she said.

Amitendu Palit, a senior research fellow at the National University of Singapore's Institute of South Asian Studies, explained that India's challenge will be managing its trade deficit, as US oil and gas could be more expensive due to the stronger dollar.

"Reciprocal tariffs are likely to follow in India too at some stage. Hopefully for India, they won't turn out to be larger than expected," said Dr Palit.

Trump also stated that the US would significantly increase its sales of military equipment to India, eventually supplying Delhi with F-35 fighter jets.

The two leaders also addressed immigration, a key issue in their bilateral relations, with Trump announcing that the US would extradite a man accused of masterminding the 2008 Mumbai terror attacks to "face justice in India."

Modi expressed gratitude to Trump for facilitating the extradition and pledged to accept the repatriation of Indian nationals residing illegally in the US.

Last week, the US deported 104 Indians accused of being illegal immigrants on a military flight, with a video showing some deportees in shackles. A second flight is scheduled to arrive in India on Saturday.

Indians represent one of the largest groups of unauthorized immigrants in the US and also hold the majority of H-1B visas, a program that Trump temporarily suspended during his first term and is now facing renewed scrutiny.