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Defence procurement, tarrif concessions: Key issues to be discussed during Modi-Trump meet

As per reports, India is in talks with the United States for the purchase and co-production of combat vehicles along with a fighter jet engine deal that the nations are finalising as Prime Minister Narendra Modi is scheduled to meet US President Donald Trump this week.

Prashant Bhardwaj by Prashant Bhardwaj
10 February 2025
in Blog
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Defence procurement, tarrif concessions: Key issues to be discussed during Modi-Trump meet
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As per reports, India is in talks with the United States for the purchase and co-production of combat vehicles along with a fighter jet engine deal that the nations are finalising as Prime Minister Narendra Modi is scheduled to meet US President Donald Trump this week.

India, the biggest importer of weapons in the world, wants to diversify its sources for defense purchases.

India, which has historically relied on Russia, is holding talks with the US in the midst of President Trump’s demand that the two countries develop a “fair trading relationship” by buying more security equipment made in the US.

According to Reuters, the subject of these conversations is the prospective co-production of Stryker combat vehicles, which are built by General Dynamics and used by the United States Army.

Furthermore, the article added that India and the United States are in the process of finalizing contract negotiations for the co-production of fighter jet engines in India.

This agreement, signed in 2023, is a crucial step toward improving India’s defense capabilities.

The strategic move is part of India’s larger effort to improve domestic defense production capabilities while establishing advanced technology alliances.

According to three government officials, India is mulling tariff reduction in at least a dozen sectors, ranging from electronics to medical and surgical equipment and chemicals, in order to promote US exports and align with New Delhi’s domestic manufacturing ambitions.

In a statement on Monday, PM Modi stated, “This visit will be an opportunity to build upon the successes of our collaboration in Trump’s first term.”

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