After a four hour meeting between President Donald Trump and Indian Prime Minister Narendra Modi several significant bits of trade news emerged.
* The two countries agreed to double bilateral trade to $500 billion by 2020. (This number was first mentioned by a US Vice President in ~2014 in Mumbai and now appears achievable)
* India agreed to ramp up fossil fuel purchases from the USA to $25 billion or more. (India may cut back oil purchases from Russia and has already stopped buying from Iran)
* India is likely to accelerate new weapons purchases from the U.S. They have already bought $20 billion since 2008. This may include the Lockheed Martin F-35 aircraft.
* India seems ready to buy nuclear reactors and technology from the USA, and intends to modify its nuclear liability law (which has held back Western companies from selling to the country).
* President Trump wants to slash the goods trade deficit with India and may impose import tariffs on some Indian goods. In response, PBS reports that ” there is a goal of finalizing by the end of this year a trade arrangement with India that the United States would judge as fair to both sides.”
The two leaders emerged from their closed-door meeting with an agreement to partnerships on space travel, artificial intelligence, and energy production. They further announced that they would pursue a framework for greater cooperation. Modi pledged a “new scale and scope” to their shared objectives, while Trump said, “Prime Minister Modi and I have agreed that we will be in negotiations to address the long-running disparities.”
Last updated: December 26th, 2025
