In a significant diplomatic event, Prime Minister Narendra Modi met with US President Donald Trump at the White House for crucial discussions on defence, trade, technology, and energy. The meeting, which follows PM Modi’s visit to France, came just hours after President Trump unveiled a new reciprocal tariff policy impacting all US trading partners, including India.
A Historic Initiative: COMPACT
The highlight of the meeting was the announcement of the COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology for the 21st Century) initiative. This landmark framework aims to transform bilateral cooperation across multiple sectors, including defence, investment, trade, energy, innovation, and multilateral partnerships.
Key Takeaways from the Modi-Trump Meeting
Defence: Strengthening US-India Military Collaboration
- A ten-year framework for the US-India Major Defence Partnership will be signed later this year.
- Expansion of US defence platforms in India, including agreements for Javelin anti-tank missiles, Stryker armoured fighting vehicles, and six additional P8I maritime surveillance aircraft.
- Review of International Traffic in Arms Regulations (ITAR) to streamline technology transfers and spare parts supplies.
- Opening negotiations for a Reciprocal Defense Procurement (RDP) agreement, facilitating mutual defence purchases.
- Acceleration of defence technology collaboration across space, air defence, missile, maritime, and undersea warfare.
- The US announced a policy review on releasing fifth-generation fighter jets and undersea warfare systems to India.
- Launch of the Autonomous Systems Industry Alliance (ASIA) for industry partnerships in underwater domain awareness (UDA) technologies, making India the first country to co-develop sensitive UDA technologies with the US.
- Joint development and production discussions on advanced defence technologies, including Sea Picket Autonomous Surveillance Systems, Wave Glider Unmanned Surface Vehicles, Low Frequency Active Towed Sonars, Multi-Static Active Sonobuoys, Large Diameter Autonomous Undersea Vehicles, and Triton Autonomous Underwater and Surface Vehicles.
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Trade: Mission 500 to Boost Economic Cooperation
- A new trade goal, “Mission 500,” aims to increase bilateral trade to $500 billion by 2030.
- Commitment to finalizing a bilateral trade agreement (BTA) by autumn 2025, addressing trade barriers and reciprocal tariffs.
- Recognition of $7.355 billion in Indian investments in the US, creating 3,000 high-quality jobs.
- Trade discussions took place amid Trump’s 25% tariff on global steel and aluminium imports, which could impact Indian exports.
Technology: TRUST Initiative and AI Roadmap
- Launch of the TRUST (Transforming the Relationship Utilizing Strategic Technology) Initiative to facilitate government, academia, and private sector partnerships in critical and emerging technologies.
- A US-India AI Roadmap set to be finalized by year-end, including next-generation data centres and AI processing collaborations.
- INDUS Innovation initiative to advance industry-academic collaboration in space, energy, and biotechnology.
- Expansion of Indian pharmaceutical manufacturing in the US for critical medicines.
- A Strategic Mineral Recovery initiative to recover and process rare earth minerals, lithium, and cobalt for high-tech industries.
- An MoU signed between the US National Science Foundation (NSF) and India’s Anusandhan National Research Foundation (ANRF) to enhance research collaboration in emerging technologies.
Energy: Advancing Nuclear and Renewable Cooperation
- Renewed commitment to the India-US Energy Security Partnership, with US backing for India’s full membership in the International Energy Agency (IEA).
- Progress on the India-US 123 Civil Nuclear Agreement, enabling US-designed nuclear reactors in India.
- Collaboration on advanced small modular reactors to scale up nuclear energy production.
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People-to-People Ties and Migration Reforms
- Expansion of joint degrees, offshore campuses, and Centres of Excellence.
- The 300,000-strong Indian student community in the US contributes over $8 billion annually to the economy.
- Streamlining student and professional mobility while addressing illegal immigration and human trafficking.
- Strengthening law enforcement ties to combat organised crime, drug trafficking, and terrorism.
Multilateral Cooperation: Counterterrorism and Strategic Alliances
- Both countries condemned Pakistan’s inaction against terrorist networks, demanding accountability for the 26/11 Mumbai and Pathankot attacks.
- President Trump confirmed the approval of 26/11 convict Tahawwur Rana’s extradition to India.
- Commitment to the Quad alliance (India, US, Japan, Australia), with PM Modi set to host President Trump for the next Quad Leaders’ Summit.
- Strengthening the India-Middle East-Europe Corridor (IMEC) and I2U2 Group with new initiatives planned for 2025.
- The launch of the Indian Ocean Strategic Venture for economic and security cooperation.
- Meta’s announcement of a 50,000 km undersea cable project to boost connectivity.
A New Era in US-India Relations
The Modi-Trump meeting has laid the foundation for a stronger US-India strategic partnership across defence, trade, technology, and energy. With the launch of COMPACT, both nations have reaffirmed their commitment to deepening economic, technological, and military ties, marking a new chapter in bilateral relations. As both leaders move forward with their ambitious initiatives, the world watches closely, anticipating the long-term impact of these groundbreaking agreements on global geopolitics and economic growth.
