New Delhi: Prime Minister Narendra Modi has left for the US from France. He was on a three-day visit to France, which included co-chairing the Artificial Intelligence Action Summit and bilateral talks with French President Emmanuel Macron. The Prime Minister will be the fourth foreign leader to visit Trump since he became the 47th US President. During his visit, Modi will meet the President and interact with business leaders and members of the Indian community residing in the US.
The talks between the two leaders will likely focus on tariffs, defence deals and addressing trade issues. The Modi-Trump meeting also comes close on the heels when the US sent back 104 illegal immigrants in a military aircraft. In this article, let us look at what is next for the India-US trade ties and more.
India-US ties: Tariff and Trade in focus
India and the US are set to have detailed talks about trade and tariffs, especially about reducing import duties.
Ahead of Prime Minister Modi’s visit to the US, Indian Foreign Secretary Vikram Misri mentioned that India expects “more focused and ongoing discussions on tariffs” during the meeting. Trump has previously described India as “a tremendous tariff maker.”
According to CNBC-TV18, India has already made progress in aligning with Trump’s trade goals by lowering tariffs on key US imports, including high-end motorcycles. This change aims to support American auto companies like Harley-Davidson.
In the 2025-26 Union Budget, Finance Minister Nirmala Sitharaman announced reduced customs duties on luxury goods, including high-end motorcycles, cars, and smartphone parts. This will benefit US companies such as Harley-Davidson, Tesla, and Apple. The duty on fully imported motorcycles has decreased from 50 per cent to 40 per cent.
Reports indicate that India is open to discussing a limited trade deal with the US to resolve market access concerns following previous unsuccessful efforts during Trump’s first term. According to Reuters, bilateral trade between India and the US exceeded $118 billion in 2023 and 2024, with India enjoying a trade surplus of $32 billion.
India is also reviewing tariffs on over 30 items, including luxury cars and solar cells, to strengthen its economic relationship with the US.
CNN reports that India now depends more on the US for trade. The US is India’s largest trading partner, accounting for nearly $120 billion in trade, while India ranks 10th for the US. Mexico, Canada, and China are the top three, with over two trillion dollars in total trade.
The US imports various products from India, including pearls, semi-precious stones, pharmaceuticals, and electrical equipment. In 2023, imports of the top five products from India to the US exceeded $47 billion.
Top US Imports from India
- Pearls and semi-precious stones: The top import from India in 2023.
- Electrical machinery and equipment: A significant import from India.
- Pharmaceutical products: Another major import from India.
- Nuclear reactors and machinery: Important imports from India.
- Mineral fuels and oils: Also a major import from India.
- Textiles, footwear, and headgear: A key import from India.
- Chemicals, plastics, rubber, and leather goods: Major imports from India.
The US also imports many agricultural products from India, such as:
- Tree nuts, mainly cashews
- Spices
- Essential oils
- Basmati rice
- Fresh and processed fruits and vegetables
Top Indian Imports from the US
- Mineral fuels, oils, and distillation products: India imported $13.41 billion worth in 2023.
- Machinery, nuclear reactors, and boilers: India imported $5.47 billion worth in 2023.
- Optical, photo, technical, and medical apparatus: India imported $2.30 billion worth in 2023.
- Plastics: India imported $2.11 billion worth in 2023.
- Pearls, precious, and semi-precious stones: India imported $5.16 billion worth in FY24.
- Electrical machinery: India imported $2.38 billion worth in FY24.
Prime Minister Modi’s US visit will focus on strengthening India-US trade relations. Key discussions with President Trump will centre on reducing tariffs, addressing trade imbalances, and potentially forging a limited trade deal. knowledge Knowledge News, Photos and Videos on General Knowledge
