Ahead of Prime Minister Narendra Modi’s upcoming visit to the United State, Dhruva Jaishankar, Executive Director of the Observer Research Foundation (ORF) America, suggested that both countries may reach an agreement on tariffs to avoid a trade dispute.
Speaking to ANI on Tuesday, Jaishankar pointed out the likelihood of an agreement between India and the US on tariffs, which would help prevent a tit-for-tat trade conflict. “We may see some kind of agreement where both sides agree on a set of tariffs and another arrangement to ensure we don’t get into a back-and-forth trade dispute over the next four years,” he said. He also mentioned that, given India’s significant position as a global steel producer, the potential for escalation in trade tensions remains a concern.
Jaishankar also addressed the issue of illegal Indian immigrants in the US and the potential for deportation. He explained that India has a longstanding policy with the US and other countries to take back individuals who have overstayed their visas or are undocumented. “India has been working with many countries to find identification mechanisms for these individuals. This is not a new policy, but the optics of it have been negative in India. Discussing how this issue can be managed better will be helpful,” he added.
Looking ahead to PM Modi’s meeting with US President Donald Trump, Jaishankar identified four key areas to watch for in the outcome of the talks:
- Re-establishing Personal Rapport: Both leaders will aim to strengthen their personal relationship, crucial for advancing bilateral ties.
- Structured Engagement: Continuation of high-level formats for structured engagement will be essential to address ongoing issues between India and the US.
- Addressing Trade and Immigration: While Jaishankar doesn’t expect immediate resolutions, he emphasized the importance of clear pathways to address tariffs and immigration challenges over the next year.
- Quick Wins for Both Sides: Specific deals that benefit both countries, such as trade deficit reduction and job creation, will be an important focus.
Jaishankar also mentioned defense agreements as a key area of focus during the visit. He outlined two types of agreements that could be reached:
- Acquiring US Inventory: India may seek to acquire more US aircraft and military equipment, which aligns with President Trump’s priorities of job creation and trade deficit reduction.
- Co-Production and Technological Benefits: India will aim for co-production or technological collaboration on new platforms, consistent with its strategic priorities.
PM Modi is set to visit the US on February 12-13 at the invitation of President Trump. This will be the first meeting between the two leaders since Trump began his second term.
