Home business Tariffs Aside, Modi-Trump Unveil An Ambitious COMPACT

Tariffs Aside, Modi-Trump Unveil An Ambitious COMPACT

The joint statement released following their meeting outlined a broad array of initiatives spanning defence, trade, technology, energy security, and multilateral cooperation,

In a landmark summit in Washington, U.S. President Donald Trump and Indian Prime Minister Narendra Modi unveiled a sweeping roadmap to strengthen the strategic partnership between the two nations.

The joint statement released following their meeting outlined a broad array of initiatives spanning defence, trade, technology, energy security, and multilateral cooperation, setting the stage for an era of deepened collaboration.

At the heart of the summit was the announcement of the U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) to drive  and transform cooperation across key sectors. A new ten-year Framework for the U.S.-India Major Defence Partnership will be signed this year, reflecting Washington’s growing commitment to New Delhi’s defence capabilities.

Key defence announcements include:

• Expanded U.S. defence sales and co-production in India, including Javelin and Stryker systems.
• Procurement of six additional P8I surveillance aircraft.
• A review of International Traffic in Arms Regulations (ITAR) to facilitate smoother defence trade and technology exchange.
• Reciprocal Defence Procurement (RDP) agreement negotiations set to begin this year.
• Autonomous Systems Industry Alliance (ASIA) launched to bolster industry partnerships in undersea warfare technology.

Additionally, the U.S. is reviewing its policy on fifth-generation fighter jets and undersea systems for potential sale to India, signalling deeper strategic trust.

‘Mission 500’

Modi and Trump also announced “Mission 500”, an ambitious goal to more than double bilateral trade to $500 billion by 2030. They committed to removing trade barriers and progressing towards a Bilateral Trade Agreement (BTA), with its first tranche set for fall 2025. Indian investments in the U.S. have already reached $7.355 billion, generating thousands of jobs.

The Modi-Trump summit saw the launch of the U.S.-India TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative to boost collaboration in emerging technologies such as AI, semiconductors, and biotechnology.

Additional highlights include:


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• A Roadmap on Accelerating AI Infrastructure by year-end.
• Expansion of INDUS Innovation, an initiative to foster industry-academic partnerships in space and energy.
• India’s increased manufacturing role in pharmaceutical ingredients to ensure global medical supply chains.
• The Strategic Mineral Recovery initiative, a joint effort to recover and process critical minerals such as lithium and cobalt.

Energy Security and Nuclear Cooperation

In a significant development, the U.S. reaffirmed its support for India’s membership in the International Energy Agency (IEA) and committed to advancing nuclear collaboration through the U.S.-India 123 Civil Nuclear Agreement. This will include:

• Construction of large U.S.-designed nuclear reactors in India with technology transfer.
• Development of advanced small modular reactors for sustainable energy solutions.
People-to-People Ties Strengthened

Recognizing the 300,000-strong Indian student community contributing over $8 billion annually to the U.S. economy, both nations pledged to streamline student and professional mobility while aggressively addressing illegal immigration and human trafficking.

Plans were also announced to enhance collaboration in higher education through joint degrees, dual programs, and offshore campuses.

Multilateral and Regional Cooperation

Reaffirming their commitment to the Quad and the Indo-Pacific, the two leaders announced:
• India will host the next Quad Leaders’ Summit with President Trump.
• The Indian Ocean Strategic Venture, a new bilateral forum to advance connectivity and commerce.
• Meta’s multi-billion-dollar investment in an undersea cable project to connect five continents and boost global digital highways.
• Strengthened regional partnerships in the Western Indian Ocean, Middle East, and Indo-Pacific.

On counterterrorism, both leaders condemned terrorism and called out Pakistan, urging it to take action against perpetrators of attacks such as 26/11 and Pathankot.

The U.S. announced that it has approved the extradition of Tahawwur Rana to India.


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In a career spanning over three decades and counting, I’ve been the Foreign Editor of The Telegraph, Outlook Magazine and The New Indian Express. I helped set up rediff.com’s editorial operations in San Jose and New York, helmed sify.com, and was the founder editor of India.com.

My work has featured in national and international publications like the Al Jazeera Centre for Studies, Global Times and The Asahi Shimbun. My one constant over all these years, however, has been the attempt to understand rising India’s place in the world.

On demand, I can rustle up a mean salad, my oil-less pepper chicken is to die for, and depending on the time of the day, all it takes to rock my soul is some beer and some jazz or good ole rhythm & blues.

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