Indian Prime Minister Modi has arrived in Washington, D.C. and is preparing to meet with President Trump and his top officials and advisors on Thursday (February 13) to discuss how to avoid a trade war and AI policies. Despite the warm relationship between Trump and Modi during his first term, Trump has referred to India as a “misuser” of trade, and his tariffs on steel and aluminum will impact India’s related industries.
Modi will be one of the first foreign leaders to visit the White House and meet with Trump. Sources have told CNBC that during this visit, India is expected to present trade proposals to address the growing U.S. trade deficit, including plans to purchase more U.S. liquefied natural gas (LNG), defense equipment, and offer concessions in agriculture and medical equipment sectors.
After arriving in Washington, Modi posted on the social platform X, “Looking forward to meeting President Trump and continuing to advance on the basis of the ‘Comprehensive Global Strategic Partnership’ between India and the U.S.” He further expressed, “Our two countries will continue to work closely for the welfare of our people and to create a better future for our planet.”
Following his arrival, Modi first met with the Indian diaspora in Washington D.C. and also congratulated Tulsi Gabbard, the new U.S. Director of National Intelligence, on her confirmation.
India is one of the world’s major LNG importing countries, making energy cooperation with the U.S. significant. Purchasing U.S. defense equipment will not only help avoid further escalation of trade wars but also enhance India’s defense capabilities.
Reports suggest that the natural gas trade between the U.S. and India may involve Cheniere Energy, a key LNG supplier as the U.S. shale gas industry develops.
India also hopes to buy more defense equipment from the U.S., including military vehicles, jet engines, and conduct more joint military exercises with the U.S. in the Indian Ocean to counter long-term threats posed by China in the region.
Indian officials are considering other trade initiatives, including a potential agreement on U.S. exports of agricultural products to India, seeking cooperation in nuclear energy investments, and pushing for reduced tariffs in at least a dozen sectors including electronics, medical and surgical equipment, and chemical products.
During his stay in Washington, Modi is scheduled to meet with the U.S. Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, and Howard Lutnick, Trump’s nominee for Commerce Secretary.
Modi will also hold a separate meeting with Elon Musk to discuss AI policies, the expansion of Starlink in India, and the possibility of Tesla establishing a factory in India.
In the technology sector, Modi and his team will reiterate their interest in purchasing high-performance graphic processing units (GPUs) from the U.S. and hope to avoid potential export controls by the Trump administration.
During a recent visit to Mumbai, Nvidia CEO Jensen Huang expressed interest in cooperating with India’s Reliance Industries to further promote AI development in India.
This is not the first meeting between Modi and Musk. In 2023, before Modi’s state visit to Washington, they met in New York. Musk had sought reduced import tariffs on electric vehicles in India, while Modi urged Tesla to establish a production base in India.
India is the world’s third-largest automobile market, after China and the U.S., showing enormous potential. Although Tesla has not publicly announced plans to build a factory in India, this meeting has led to adjustments in India’s government policies towards the electric vehicle industry.
India has become an important growth market for U.S. tech companies. Apple, Meta, Microsoft, Google, Amazon, and other companies have committed to investing billions in India to drive economic growth and tap into the emerging middle-class market in India.
Analysts estimate that currently, Apple produces about 10-15% of its iPhones in India. Apple CEO Tim Cook hinted that the company may shift more production lines to India. Apple opened several retail stores in India in 2023.
For Modi, this trip is also an opportunity to attract investment and cooperation from the Indian private sector.