Reviewing Potential Deals for India Ahead of Modi’s Visit to the US
Key Highlights
India and the US could talk about jet engine deal, 810 Authorization, and the AI Diffusion Framework.
Narendra Modi will be on a 2-day visit to America starting February 12, 2025.
India is reportedly considering to cut tariffs for the US.
India, that is Bharat, has dealt with the Trump Administration before. The country is now better positioned to build on the foundation architectured in his previous term. Such a statement is taking center stage because India’s Prime Minister Narendra Modi is scheduled to visit the US for two days starting February 12, 2025. And, on the list of bilateral talks are multiple deals that may or may not end up featuring between the two leaders.
Donald Trump and Narendra Modi share a close bond when it comes to protecting their respective countries and people. Hence, all their meetings emit nationalistic fire and a chance to deepen the bond between India and America. This article, for now, focuses on deals that could be the talking point between them during the Indian PM’s 2-day US visit.
Probable Topics for India and the US
Every report states a different list of topics that could come up when the Prime Minister of India and the President of the US meet. The top three topics that stand out are the production of combat vehicles plus the jet engine deal, 810 Authorization, and the AI Diffusion Framework.
A report published by Reuters has highlighted that both nations are already in talks to purchase and jointly produce combat vehicles. This is part of Trump’s pitch to India wherein he has asked Narendra Modi to consider buying more security equipment made by America. There is a chance that India may even buy hundreds of them; however, there is no official statement at the moment to confirm this intent.
Narendra Modi has published a post on X, saying that his visit to the US will cement the friendship between India and the US. He has also expressed confidence in their upcoming talks, stating that they will build on the ground that was covered in Trump’s previous tenure.
Another topic that could come up is 810 Authorisation. According to a report by Indian Express, the said provision allows American nuclear power companies to only export to other countries. They are restricted from manufacturing nuclear equipment or performing nuclear design work outside of the US. India is looking to navigate this challenge to further its mission of participating in the manufacturing of and co-producing nuclear components.
AI Diffusion Framework is likely to come up, for India is on a mission to boost the Artificial Intelligence sector in the country. The framework currently restricts the export of AI hardware. According to Indian Express, Joe Biden’s administration had set up the AI Diffusion Framework during his last days and had created three tiers, placing nations accordingly. India features on the middle tier which limits the number of GPUs that it can import. India, along with China, has been placed in the General Validated End User list. It is to ensure that companies in Bharat get authorization only for civilian and military purposes.
What is India Doing to Achieve its Mission?
Donald Trump was vocal about imposing tariffs on other countries. He had called India an abuser of tariffs, saying that the country charges hefty amounts for imports. A solution that he sought was an equally higher tariff on India. Reportedly, he is planning to bring up an additional tariff of 25% on imports from Bharat.
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India took its time and is now likely to come up with a measure to cut tariffs on select items. While this looks like an attempt to only soften Trump’s stand on imposing tariffs, India is also bringing down the share to make sure that both countries are able to mutually boost their trades.
Situation in the US
Meanwhile, the US has started seeing the effect of Donald Trump taking over the Presidential Chair. He has deported several illegal migrants, and the Department of Government Efficiency (DOGE), is working in full swing to help him achieve his MAGA goal. Led by Elon Musk, DOGE has started saving millions and billions of Dollars for the US.
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