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​Transactional turn: On India and the new U.S. administration | Current Affairs | Vision IAS

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​Transactional turn: On India and the new U.S. administration

2 min read

Prime Minister's Visit to Washington

Key Highlights of the Visit

  • Bilateral Meetings: Indian PM was the fourth world leader to meet USA's President Donald Trump, indicating the significance of the India-U.S. relationship.
  • Mission 500: The launch of 'Mission 500' aims for $500 billion in bilateral trade by 2030, with discussions on a free trade agreement underway.
  • Trade and Investments:
    • Increased Indian purchases of U.S. energy, oil, and defense equipment were announced.
    • These moves are expected to help balance the $45.7 billion U.S. trade deficit against India's $130 billion goods trade with the U.S.
  • COMPACT Framework: A new framework was agreed upon to streamline cooperation across military, commerce, and technology sectors.
  • TRUST Initiative: The rebranded initiative focuses on semiconductors, quantum computing, and AI, aiming to develop an AI infrastructure roadmap.
  • Extradition of Tahawwur Rana: USA's President announced approval for the extradition of Tahawwur Rana to India for his involvement in the 26/11 attacks.

Strategic and Economic Implications

The visit highlighted a strong foundation for future India-U.S. relations, with noteworthy continuity in strategic partnerships, particularly in Indo-Pacific engagement and the Quad.

Challenges and Concerns

  • Economic and Trade Issues: The visit did not significantly alter USA's President  stance on counter-tariffs and reciprocal taxes, posing potential challenges for India.
  • Immigration Policies: The issue of deportation of undocumented immigrants remains a sensitive topic requiring careful negotiation.

India must strategically navigate these challenges to safeguard its interests while engaging with the new U.S. administration.

  • Tags :
  • India USA
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