India – U.S. first phase discussions
Context:
During the recent meeting of the Indian Prime Minister with the U.S. President, they have agreed to negotiate the first phase of the trade agreement by autumn 2025.
- This shall include a series of agreements on reducing the trade deficit, boosting energy cooperation, defence, technology, etc
Relevance:
GS-02 (International Relations)
India-U.S. Trade Talks & Energy Cooperation
- India expects to reduce its trade deficit by increasing the imports from the U.S., likewise, energy purchases is expected to grow from $15 billion to $25 billion soon.
- In order to boost India’s energy security, both nations agreed to work on small modular nuclear reactors.
- Small modular nuclear reactors are those reactors that are designed to be built in factories and transported to sites for installation. They can be used to power commercial operations and buildings.
- The target is to double bilateral trade to $500 billion by 2030 under ‘Mission 500’.
Defence & Security Cooperation
- The U.S. also agreed to provide India with F-35 stealth fighters, and a decade-long defence framework was announced, including:
- Procurement of six additional P-8I Maritime Patrol aircraft for maritime surveillance.
- Reopening negotiations for Reciprocal Defence Procurement (RDP) to align procurement policies.
- Review of U.S. arms transfer regulations (ITAR) to facilitate military technology transfers.
- Strengthening Indo-Pacific security with underwater domain awareness technologies under the ‘Autonomous Systems Industry Alliance’.
Extradition of Tahawwur Rana
- The U.S. President cleared the way for Tahawwur Rana’s extradition to India for his role in the 26/11 Mumbai attacks.
- Logistics of the surrender are being finalised between Indian and U.S. authorities.
India-U.S. Strategic & Diplomatic Engagement
- New strategic initiative: U.S.-India COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) to enhance defence, trade, and technology cooperation between India and the United States.
- Meanwhile, it was agreed that the U.S. will help India to maintain border security issues, especially concerning China.
- Both leaders emphasised national interests, linking ‘Make America Great Again’ (MAGA) with ‘Viksit Bharat’ (developed India).
