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Donald Trump pushes India to buy more US weapons in trade rebalancing

by Investor News Today
January 28, 2025
in Market Updates
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Donald Trump pushes India to buy more US weapons in trade rebalancing
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US President Donald Trump has pushed India’s Prime Minister Narendra Modi to purchase extra American-made weapons, as he known as for the international locations to rebalance their commerce relationship in a name late on Monday.

Trump emphasised that India must be growing its “procurement of American-made safety tools and shifting towards a good bilateral buying and selling relationship”, in accordance with a White Home assertion issued after the decision between the leaders, which the US known as “productive”.

Trump and Modi cultivated an in depth relationship in the course of the US president’s first time period, and New Delhi has been a strategic associate in Washington’s efforts to counter an more and more assertive Beijing.

However Trump additionally known as India a “very massive abuser” on commerce throughout his re-election marketing campaign final 12 months, and analysts pointed to areas of friction between the international locations, comparable to their commerce deficit, Indian imports of Russian oil and the move of Indian immigrants to the US.

“The bilateral relationship could be very more likely to stay a powerful one underneath Trump 2.0, but transactional, wherein President Trump can even require some concessions from India,” stated Rani Mullen, a senior visiting fellow on the Centre for Coverage Analysis in New Delhi.

The US is India’s second-largest buying and selling associate, narrowly trailing China, and New Delhi recorded a $35bn commerce surplus with Washington between January and November 2024, in accordance with the newest information from India’s commerce ministry. Trump has threatened to impose tariffs on Brics countries, a grouping of main rising economies that features India.

In a social media submit late on Monday, Modi known as Trump a “pricey pal” and stated they have been “dedicated to a mutually helpful and trusted partnership” in a number of areas, together with safety.

Trump later informed reporters that Modi would go to the White Home “most likely in February”, which might make the Indian chief among the many first overseas dignitaries to go to because the US president’s inauguration.

Trump’s requests got here as India, lengthy the world’s largest arms importer, has been in search of to diversify its weapons suppliers past Russia. It has leaned on the US, together with different international locations comparable to France, to shut a niche in navy expertise and preparedness with regional rival China.

Modi has additionally pushed India’s navy to support domestic arms manufacturers, a part of his ambition for the defence and aviation industries to assist make the nation a world manufacturing energy. Modi has set a goal of $35bn for home defence manufacturing by the tip of the last decade, up from practically $20bn final 12 months.

New Delhi must improve its navy capabilities whether it is to match these of nuclear-armed neighbour China, in accordance with analysts, together with in fighter jets, submarines, tanks, helicopters and even assault rifles. Whereas some home arms makers have such capabilities, India lacks vital knowhow for technologies such as military jet engines.

Trump and Modi additionally mentioned increasing safety co-operation within the Indo-Pacific area and reiterated their dedication to the Quad — a strategic grouping that additionally contains Japan and Australia — in accordance with the White Home. India is ready to host the group’s leaders this 12 months.

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The Yarlung Zangbo Grand Canyon in Nyingchi city, in China’s western Tibet Autonomous Region

The decision coincided with a go to by India’s overseas secretary Vikram Misri to Beijing on Tuesday, throughout which the international locations agreed in precept to renew direct passenger flights for the primary time in 5 years. The routes have been initially suspended in the course of the Covid pandemic, and remained so after lethal border clashes in 2020 soured relations.

Trump stated he and Modi additionally mentioned immigration, a precedence for the brand new US administration, including that the Indian prime minister would “do what’s proper” by way of accepting the return of unlawful Indian nationals from the US. 

Indians made up the third-largest group of unauthorised immigrants within the US in 2022 after Mexico and El Salvador, in accordance with the Pew Analysis Middle.



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