US, India Plan to Negotiate Trade Deal, 'Streamline' Defense Trade
India and the U.S. will negotiate a bilateral trade agreement that will cover multiple sectors in tranches, with the first aiming for completion in the fall of 2025, President Donald Turmp and Indian Prime Minister Narendra Modi said in their joint statement, released after their meeting Feb. 13. The two leaders also announced plans to increase U.S. military sales to India and possibly reduce defense trade restrictions under the International Traffic in Arms Regulations.
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They said the upcoming trade deal would be designed to deepen trade in goods and services, deepen supply chain integration, and reduce tariff and non-tariff barriers. They said they would like to have $500 billion in two-way trade by 2030. In 2023, it was just over $190 billion.
The U.S. also welcomed India's decision to lower tariffs on bourbon, motorcycles, information and communication technology products and metals, as well as measures to enhance market access for U.S. agricultural products, like alfalfa hay and duck meat, and medical devices. India said it appreciated measures that make it easier to import Indian mangoes and pomegranates.
During a press conference alongside Modi, Trump added that, starting this year, the U.S. will increase military sales to India by “many billions of dollars." The U.S. is also “paving the way to ultimately provide India with the F-35 stealth fighters," Trump said.
The two leaders' joint statement said they plan to review their arms transfer rules, including the ITAR, in order to "streamline defense trade, technology exchange and maintenance, spare supplies and in-country repair and overhaul of U.S.-provided defense systems." They also agreed to start talks on a "Reciprocal Defense Procurement" deal that could allow for more exchanges of defense goods and services.
"The leaders pledged to accelerate defense technology cooperation across space, air defense, missile, maritime and undersea technologies, with the U.S. announcing a review of its policy on releasing fifth generation fighters and undersea systems to India," the statement said.
During the press conference, Trump also said India agreed to import more American oil and gas to make the U.S. “hopefully their number one supplier,” and is “reforming its laws to welcome U.S. nuclear technology ... into the Indian market.”