financetom
Economy
financetom
/
Economy
/
Trump Unveils $500 Billion Trade Goal To Supercharge US-India Ties
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Trump Unveils $500 Billion Trade Goal To Supercharge US-India Ties
Feb 15, 2025 11:44 AM

Indian Prime Minister Narendra Modi’s visit to Washington this week was a focused, business-oriented trip, with key agreements with President Donald Trump and challenges shaping the US-India relationship.

The working visit saw Trump announce a significant expansion in US military sales to India, including F-35 jets, alongside increased oil and gas exports to help narrow the trade deficit.

Both nations agreed to negotiate a trade deal and finalize a new defense framework, with the US also approving the extradition of Tahawwur Rana, accused of involvement in the 2008 Mumbai attacks in India, reports BBC.

The two countries also set a bold trade target of $500 billion by 2030, aiming to double the current $190 billion trade volume.

Also Read: Benzinga Bulls and Bears: Apple, Nvidia, Netflix and Trader Predicts Dogecoin Surge by March 24

However, uncertainties remain around the specifics of the trade deal, with experts divided on whether it will be a full free trade agreement or targeted tariff reductions.

A critical concern was Trump’s order for reciprocal tariffs, which could lead to import taxes on US trading partners.

India, which enjoys a trade surplus with the US, preemptively reduced its average tariffs to mitigate this.

While some experts, like Ajay Srivastava, believe India is unlikely to face significant tariff hurdles, others, including Abhijit Das, warn that non-tariff barriers could still pose challenges, especially in agriculture, where US subsidies and strict regulations may complicate negotiations, BBC adds.

On defense, the US committed to a multi-billion-dollar arms sale to India, including F-35 jets, although logistical and bureaucratic hurdles could slow progress. Despite this, India’s growing reliance on US defense equipment suggests further deepening of ties.

Modi’s meeting with Elon Musk was notable, as it touched on emerging technologies and AI, though Tesla’s entry into India remains uncertain. Modi also held a rare press conference with Trump, answering questions on illegal immigration and the Adani Group bribery charges, marking a shift from his usual approach to media interaction.

Read Next:

Billionaire Investor Dan Loeb Boosts Stake In Mark Zuckerberg’s Meta, Elon Musk’s Tesla, But Sold These Three Mag 7 Stocks In Q4

Image: Shutterstock

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
Mar 22, 2024
07:38 AM EDT, 03/22/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Friday, except for a decline versus the yen, ahead of a series of appearances by Federal Reserve officials that compensate for a lack of major US data. Fed Chairman Jerome Powell is scheduled to make opening remarks at a Fed Listens conference at...
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
Mar 22, 2024
WASHINGTON (Reuters) - The Republican-controlled U.S. House of Representatives and Democratic-majority Senate on Friday will scramble to beat a midnight government shutdown deadline by passing a $1.2 trillion bill keeping the government funded through September. If they succeed, it will end a more-than-six-month battle over the scope of Washington's spending for the fiscal year that began Oct. 1. If they...
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
Mar 22, 2024
(Reuters) - U.S. companies' purchases of domestic equities through more stock buybacks and corporate acquisitions will hit a six-year high of $625 billion this year, about as much as mutual funds and pension houses will offload, Goldman Sachs said. A surge in share buybacks and continued growth in cash mergers and acquisitions (M&A) will be the primary drivers of corporate...
Fed Chair Powell says pandemic has had lasting effects on economy
Fed Chair Powell says pandemic has had lasting effects on economy
Mar 22, 2024
(Reuters) - Federal Reserve Chair Jerome Powell on Friday opened a Fed Listens event on how Americans are experiencing the economy, saying the pandemic has had lasting effects and that to make good policy the U.S. central bank cannot rely only on macroeconomic data but needs to hear directly from people and businesses. He did not make any remarks about the...
Copyright 2023-2025 - www.financetom.com All Rights Reserved