Narendra Modi, Prime Minister, India

By Global Leaders Insights Team ,

Under Prime Minister Narendra Modi, India has taken a reasonable and friendly approach to the trade war started by President Donald Trump in 2025, so that India’s interests are safe and its partnership with the US improves. Although the trade war imposed by Trump’s tariffs is a challenge for Modi, it also creates an opportunity to reach an arrangement that benefits both countries. He wants to make sure India’s $46 billion trade surplus with the US does not threaten the local manufacturing initiative he set up.

While visiting Washington in February 2025, Modi recommended reducing taxes on electronics and medical products to stop a huge trade war and highlighted greater oil, gas, and defense goods from the US, especially the F-35 jets, to balance the trade imbalance. He characterized these deals as ones that would lead to a “mega partnership,” since both countries want to develop and improve through their visions. According to Modi’s office, trade between U.S. and India is planned to climb to $500 billion by 2030 and negotiations for their trade deal must end by autumn of 2025.

Under Modi, India is now seen as a reliable friend by the US when facing China’s regional influence, allowing them to maintain their independence. The Prime Minister refuted the idea of zero tariffs and clarified that the two sides wanted a fair agreement. Modi worked to address tension by slashing average tariffs from 13 percent to 11 percent, but he is keeping a close eye on protecting Indian agricultural markets.

Trump once called India a “tariff king,” but Modi’s good relationship allowed them to agree on a three-month extension before beginning talks. Modi sees the trade war as a means to build better supply chains and draw US investors, though he is aware of challenges such as depending on China and an economic decline. While making certain concessions, he attempts to keep India’s interests safe so the nation can become a hub for global manufacturing.