India's Prime Minister Narendra Modi has praised what he described as a "mega partnership" with the United States, following an agreement for India to increase imports of American oil and gas.
Modi's two-day visit comes amid US President Donald Trump's recent directive for all trading partners, including India, to face sweeping reciprocal tariffs.
While both leaders commended each other's leadership, Trump criticized India for imposing some of the world's highest trade tariffs, labeling them a "big problem."
In an effort to ease potential trade tensions, Modi expressed a willingness to reduce tariffs on American goods, repatriate undocumented Indian nationals, and explore the purchase of US-made military fighter jets.
During a joint press conference, Modi playfully referenced Trump's campaign slogan, "Make America Great Again," with his own variation: "It's Make India Great Again – MIGA," he said. "MAGA plus MIGA… [is a] mega partnership for prosperity."
Trump highlighted India's commitment to buying more American oil and gas to help reduce the trade deficit between the two nations. "They need it. And we have it," Trump remarked.
India, already heavily reliant on oil imports from various countries, sees the energy deal as an accessible opportunity for both sides. Radhika Rao, a senior economist at Singapore's DBS Bank, told the BBC that the agreement reflects India's proactive approach to maintaining smooth trade relations while addressing the US's trade deficit.
However, Amitendu Palit, a senior research fellow at the National University of Singapore’s Institute of South Asian Studies, warned that India might struggle to manage its own trade deficit, as US oil and gas could prove more costly due to the strong dollar.
"Reciprocal tariffs are likely to hit India at some stage," Dr. Palit said. "The hope is that they won’t be larger than expected."
Modi's two-day visit comes amid US President Donald Trump's recent directive for all trading partners, including India, to face sweeping reciprocal tariffs.
While both leaders commended each other's leadership, Trump criticized India for imposing some of the world's highest trade tariffs, labeling them a "big problem."
In an effort to ease potential trade tensions, Modi expressed a willingness to reduce tariffs on American goods, repatriate undocumented Indian nationals, and explore the purchase of US-made military fighter jets.
During a joint press conference, Modi playfully referenced Trump's campaign slogan, "Make America Great Again," with his own variation: "It's Make India Great Again – MIGA," he said. "MAGA plus MIGA… [is a] mega partnership for prosperity."
Trump highlighted India's commitment to buying more American oil and gas to help reduce the trade deficit between the two nations. "They need it. And we have it," Trump remarked.
India, already heavily reliant on oil imports from various countries, sees the energy deal as an accessible opportunity for both sides. Radhika Rao, a senior economist at Singapore's DBS Bank, told the BBC that the agreement reflects India's proactive approach to maintaining smooth trade relations while addressing the US's trade deficit.
However, Amitendu Palit, a senior research fellow at the National University of Singapore’s Institute of South Asian Studies, warned that India might struggle to manage its own trade deficit, as US oil and gas could prove more costly due to the strong dollar.
"Reciprocal tariffs are likely to hit India at some stage," Dr. Palit said. "The hope is that they won’t be larger than expected."
