Rhea Ruth Subash

B.A. Multidisciplinary Studies

ID: 24BBAP062
Indian Foreign Policy (Assignment)

The U.S.-India Nexus: COMPACT (2025) and

the Future of Strategic Cooperation
Abstract
The U.S.-India Compact 2025 is a comprehensive agreement that marks a significant milestone
in the evolving strategic partnership between the two countries. It reflects the growing
convergence of geopolitical, economic, strategic, and technological interests shaped by
realpolitik values. The agreement represents a significant advancement in this relationship given
the increasing political volatility not only in the Indo-Pacific region but in the world as a whole.
This agreement thus remains pivotal in shaping India’s strategic autonomy while reinforcing US
regional influence.
There has been research on India-US relations before for obvious purposes, however, there
remains an obvious gap now that we see a full-fledged conservative and right-leaning
government in the US and as the weather in global politics changes. The world no longer remains
a unipolar world; however, the United States remains a force to be reckoned with and must
always remain recognized in India’s foreign policy.

Vision and Objective:

Using a qualitative research approach, this study integrates policy analysis, official statements,
studying MoUs, and bilateral treaties signed between other countries to help evaluate strategic
alignment, objectives, and challenges between India and the United States. It is important to
acknowledge that the deal reinforces India’s aspirations for strategic autonomy and global
influence in the Asian region as well as stands as an important center in the multipolar world
that’s emerging; but also, the US’ broader objectives in the Indo-Pacific region wherein it wants
to stand as a counter to China. The study concludes by assessing the long-term trajectory of
India-U. S relations and exploring avenues for further bilateral cooperation in the future.
By offering an analysis of COMPACT (2025), this paper seeks to contribute to the broader
discourse on India’s foreign policy and global integration, demonstrating how this agreement
serves as a blueprint for deeper India-US collaboration and to examine in who’s favor is this
weighing amidst a changing world order.

Introduction
India and the United States of America share a complex and evolving bilateral relationship – One
that is shaped by historical interactions, strategic interests and economic cooperation. It is a tie
that first started with mutual skepticism during the cold war to a robust multi-faceted
engagement spanning over multiple strategic spheres such as defense, trade, technology and
diplomacy.

The India-U.S. strategic partnership is founded on a growing convergence of interests and shared
values including a commitment to democracy and upholding the rule-based international system
that safeguards sovereignty and territorial integrity, upholds democratic values, and promotes
peace and prosperity for all. The United States and India have shared interests in promoting
global security, stability, and economic prosperity through trade, investment, and
connectivity. The two nations have numerous bilateral agreements that have strengthened
cooperation which continue to underscore the deepening strategic alignment between the world’s
largest democracy and its oldest one.

A renewed partnership between its two leaders seeks to enhance bilateral ties but also contributes
significantly to regional and global stability, reflecting the shared commitment of both nations to
emerge at the top of the world pecking order – a new leader in these changed times.

I. A Brief Historical Context of our

Relations with the United States

Both the India and the United States uphold common principles such as pluralism, human rights,
freedom, and the rule of law. They also face shared challenges, including terrorism, climate
change, and pandemics, which have necessitated cooperation. Both nations rely on West Asian
oil (especially the US), aligning their regional interests. Since 1947, the U.S. viewed India as a
significant partner, recognizing its economic potential and global influence through groups like
the G-77 and NAM.
Despite tensions between the two countries during the cold war due to India’s ‘close relations
with the USSR’, ties had always remained nuanced; India remained the largest recipient of U.S.
aid until the 1970s, and economic cooperation grew in the 1980s. However, U.S support for
Pakistan, particularly through military aid and nuclear development, strained relations. With the
U.S as the sole superpower post the 1990s, India had to recalibrate its foreign policy. It backed
U.S.-led initiatives, supported sanctions on Iraq, strengthened diplomatic ties with Israel, and co-
sponsored UN resolutions on disarmament. With the LPG (Liberalization-Privatization-
Globalization) program implemented in India (and yielding results in subsequent years)
economic collaboration also deepened.
Eight rounds of dialogue between the then Indian External Affairs minister Jaswant Singh and
Strobe Talbott were conducted to ease strain and address India’s global isolation. There were no
significant breakthroughs on the nuclear front but the dialogue did pave way for President
Clinton’s 2001 visit which sought to pave the way for a positive relationship. This shift was
farther aided by the economic growth that India now exhibited post the introduction of the LPG
reforms in its economic program (as well as the role of Indian intelligentsia in the rising US I.T.
sector.
Since 2000’s the India-US relations have strengthened due to shared strategic, economic and
security interests. The 2005 Indo-U.S. Defense Framework and the 2008 Civil Nuclear
Agreement further bolstered the defense cooperation between the two countries as they aligned
on issues such counterterrorism and Indo-pacific security.
However, divergence persist --- India maintains strategic autonomy resists U.S pressure on
market liberalization, digital regulations and climate commitments, and disagrees on U.S policies
towards Pakistan and Afghanistan. Despite these differences, the partnership continues to deepen
driven by mutual geopolitical and national economic interests.

Modi and Trump: Past interactions

Mutual Visits Between Donald Trump and Narendra Modi
The relationship between India and the United States has been significantly shaped by high level
diplomatic engagements, including reciprocal visits between 45th and 47th President of the United
States of America, Donald Trump as well as 3-time Prime Minister of India, Shri. Narendra Modi
in 2019 and 2020 itself. These visits were marked by grandiose public events, strategic
discussions and trade negotiations. This played a key role in forging a tie between the two
leaders as well reinforcing ties in areas such as defense, economic cooperation and global
security.
Prime Minster Narendra Modi made multiple visits to the United Stated during Donald Trump’s
tenure, the most notable of them being the 2019 visit to Texas where he was invited for the
infamous ‘Howdy Modi’ event. This was held on September 22, 2019, this massive gathering
saw the attendance of over 50,000 of Indian diaspora, making it one of the largest ever receptions
for a foreign leader in the U.S. What made the event historically significant was Trump’s
participation, signaling the growing India-US partnership. The leaders spoke about economic
cooperation, counter terrorism and their shared vision for the Indo- Pacific.
Earlier, in 2017, Modi visited the United States for his first official meeting with Trump,
focusing on deepening defense and economic ties. The discussions led to agreements on
counterterrorism, energy cooperation, and the purchase of U.S. defense equipment by India. This
visit laid the foundation for stronger strategic engagement between the two nations and their
charismatic leaders.
Donald Trump made his first and only visit to India in February 2020. His trip was marked by
the grand ‘Namaste Trump’ event in Ahmedabad which mirrored Modi’s Houston reception. It
was hosted at the Narendra Modi stadium, the largest cricket stadium in the world.
During this particular visit, Trump and Modi focused on enhancing defense cooperation,
finalizing a $3 Billion arms deal that included Apache and MH-60 Romeo helicopters. They also
discussed trade negotiations, though no major trade agreement was actually signed. Formal
bilateral talks were held at New Delhi, covering topics such as counter-terrorism, energy security
and Indo-pacific cooperation (topics which both countries converge on strategically).

Impact of These Visits on India-U.S. Relations

The reciprocal visits between Trump and Modi helped solidify a new kind of partnership
between India and the U.S. They reinforced defense ties, expanded trade cooperation, and
strengthened the personal rapport between the two leaders – which by far, is the more crucial to
the relationship that is shared even today.
However, some challenges remained and persisted at the time, particularly regarding trade
disputes, U.S. concerns over India’s purchase of Russian defense equipment, and differing views
on global issues like climate change. Despite this, these visits contributed significantly to
enhancing diplomatic ties and paving the way for continued cooperation under subsequent
administrations.
1) Early Trade Disputes: In 2020, the United States and India were involved in several trade
disputes, primarily centered around the US's imposition of tariffs on Indian steel and
aluminum exports and India’s retaliatory duties on certain US products. These tensions
trace back to 2018, when the US imposed tariffs on steel and aluminum imports from
various countries, including India, citing national security concerns. India challenged
these measures at the World Trade Organization (WTO), arguing they violated WTO
rules, leading to the formation of a panel to investigate the issue. In response, India
imposed additional duties on selected US products, prompting the US to initiate a
separate WTO dispute. Both cases went through WTO dispute settlement proceedings,
which included consultations and panel reports, though the process was delayed due to
 the complexity of the cases and the COVID-19 pandemic. Eventually, the two countries
reached a mutually agreed solution, terminating six pending WTO disputes, including
those related to steel, aluminum, and the retaliatory tariffs. These disputes occurred
alongside broader US-India trade tensions, including issues related to trade barriers and
intellectual property rights. The US-China trade war also influenced the dynamics, as the
US sought to redirect trade flows from China to other partners, including India. Despite
past frictions, the US and India continue to share a robust and growing trade relationship,
with ongoing negotiations for a bilateral trade agreement. The US has also emphasized
strengthening its partnership with India as part of a broader strategy to counter China’s
regional influence.

2) The Climate Issue: In 2020, the US government under Trump adopted a critical and
negative stance on India’s climate responsibilities, particularly its emission reduction
commitments. This was evident in the US withdrawal from the Paris Agreement, which
took effect in November 2020 and marked a significant departure from global climate
consensus for the country. The move was viewed as a setback for international climate
action, especially efforts involving developing nations like India. Additionally, the US
exhibited longstanding skepticism toward binding emissions targets for developing
countries, maintaining that such nations should not bear the same obligations as
developed ones. This perspective was also evident in the US's earlier refusal to ratify the
Kyoto Protocol, which mandated emission cuts only for developed countries.
Defense and Security Cooperation
One of the most significant outcomes of these visits was the enhancement of defense ties. During
Trump’s visit to India in February 2020, the two countries signed a $3 billion defense deal, under
which India agreed to purchase 24 MH-60 Romeo helicopters for the Indian Navy and six
Apache attack helicopters for the Indian Army. These acquisitions bolstered India's maritime
security and aerial defense capabilities. Additionally, Modi’s 2017 visit to the U.S. reinforced
India's designation as a “Major Defense Partner”, a status that facilitates high-end technology
transfers and intelligence sharing. This designation paved the way for agreements such as the
Communications Compatibility and Security Agreement (COMCASA) and the Industrial
Security Annex (ISA), which enhanced defense cooperation between the two nations.
Counterterrorism cooperation was another critical area of discussion during these visits. Both
leaders condemned cross-border terrorism and urged the Pakistan government to take decisive
action against terror groups such as Jaish-e-Mohammed (JeM) and Lashkar-e-Taiba (LeT).
Enhanced intelligence-sharing mechanisms were discussed, ensuring closer collaboration in
counterterrorism efforts.
Energy Trade and Strategic Cooperation
Another key area of engagement between Trump and Modi was energy trade. India expanded its
import of U.S. crude oil and liquefied natural gas (LNG), diversifying its energy sources and
reducing dependency on traditional suppliers. This was formalized through the Strategic Energy
Partnership (2020), an agreement aimed at fostering bilateral cooperation in the field of energy
security, clean energy, and sustainable fuel development.
Indo-Pacific Strategy and Regional Stability
Geopolitical considerations, particularly in the Indo-Pacific region, were central to the
discussions between Trump and Modi. The two leaders emphasized their commitment to a free
and open Indo-Pacific, countering China’s growing influence in the region. Their visits
reinforced the Quad alliance (India, the U.S., Japan, and Australia) as a key grouping for
maintaining regional stability.
Trade and Economic Engagement
Trade relations between India and the U.S. were a recurring theme during Modi and Trump’s
visits. While a comprehensive trade agreement was not signed, discussions led to a few
reductions in trade barriers. India lowered tariffs on select U.S. goods, while the U.S. pushed for
greater market access and stronger patent protections. However, a major point of contention
remained India’s removal from the Generalized System of Preferences (GSP) in 2019, which
impacted India's tariff-free exports to the U.S. Despite Modi’s diplomatic efforts, Trump did not
reinstate India’s GSP status, though trade negotiations continued.

II. 2025: The India-US conclave

The recent meeting between Indian Prime Minister Narendra Modi and U.S. President Donald
Trump at the White House in February 2025 once again showed us the evolving nature of Indo-
U.S. relations. This was Modi’s first visit to the U.S. during Trump’s second term, marking a
significant moment in their long-standing diplomatic engagement. Their discussions focused on
trade, strategic collaboration, and global security, highlighting the convergence of interests while
carefully sidestepping contentious issues.
A major highlight of the meeting was the emphasis on trade relations. Trump, who has
consistently criticized India's high tariffs on American goods, reiterated the need for fair trade
practices. In response, Modi assured greater economic cooperation, including increased energy
imports from the U.S. and a commitment to expanding bilateral trade to $500 billion by 2030.
Additionally, Modi proposed aligning India’s economic vision, “Make India Great Again”
(MIGA), with Trump’s “Make America Great Again” (MAGA), emphasizing a “mega
partnership for prosperity.”
Strategic and security collaborations also took center stage. The two leaders agreed to strengthen
cooperation in space exploration, artificial intelligence, and defense, with India committing to
purchasing advanced military equipment, including F-35 stealth fighter jets. Furthermore, Trump
announced his commitment to restoring the U.S. as a leading energy supplier to India, reducing
India’s dependency on other sources. Another significant agreement involved infrastructure
development through the proposed India-Middle East-Europe Economic Corridor (IMEC), aimed
at countering China’s Belt and Road Initiative.
Terrorism and international security were also key discussion points. Modi lauded Trump’s
decision to approve the extradition of Tahawwur Rana, accused of supporting the 2008 Mumbai
attacks. Both leaders pledged to collaborate in countering radical terrorism, with Trump vowing
to increase military sales to India. However, while the two leaders emphasized their unity against
terrorism, Modi has faced criticism for his administration’s handling of religious tensions in
India.
Beyond Indo-U.S. relations, Trump’s remarks on the Russia-Ukraine war gained attention. He
reiterated Russia’s long-standing opposition to Ukraine joining NATO and suggested that the war
might have been avoidable under his leadership. While Modi did not publicly comment on the
conflict, India’s traditionally close ties with Russia make Trump’s stance noteworthy in shaping
future diplomatic decisions.
The meeting between Modi and Trump reaffirmed the growing strategic ties between India and
the U.S., reflecting mutual interests in trade, security, and global influence. However, the long-
standing economic disparities and concerns over democratic backsliding in both nations remain
underlying challenges.

III. Dissecting the agreement

The comprehensive strategic partnership between India and the United States rests on multiple
pillars that reflect shared democratic values and converging national interests. High-level
exchanges, defense collaboration, trade and investment, energy security, technological
innovation, multilateral cooperation, and people-to-people ties all contribute to a robust,
multifaceted relationship that is continually evolving and form the key subjects for further
discussion.

High-Level Exchange
Regular dialogue between leaders remains a cornerstone of the bilateral partnership. Recent
high-level visits, including Prime Minister Narendra Modi’s official working visit to Washington,
DC, in February 2025, underscore this commitment. During that visit, Modi and President Trump
launched the “U.S.-India COMPACT” initiative—designed to catalyze transformative change
across key sectors.

Defense
The relationship is anchored in a series of defense agreements, such as the U.S.-India Major
Defense Partnership and ongoing negotiations for a Reciprocal Defense Procurement (RDP)
agreement. Regular military-to-military exchanges, joint exercises like Malabar and Cope India,
and mechanisms like the 2+2 Ministerial Dialogue seek to open up and provide structured
platforms for aligning strategic interests. New initiatives—such as the Autonomous Systems
Industry Alliance (ASIA)—aim to scale defense industrial partnerships in the Indo-Pacific,
ensuring that both nations can address emerging security threats and maintain stability in the
region.

Trade and Investment

Economic engagement remains a critical dimension of the bilateral relationship. With a new
target to double bilateral trade to $500 billion by 2030 under the “Mission 500” framework, both
nations are working toward a more “mutually” beneficial economic relationship. Efforts include
the launch of a multi-sector Bilateral Trade Agreement and the reinforcement of dialogue
mechanisms like the India–US Trade Policy Forum. Increased U.S. investments in India—
already significant as a major source of foreign direct investment—coupled with Indian
companies’ growing presence in the U.S., further illustrate the deepening trade ties. This
economic interdependence is expected to drive innovation, create jobs, and foster growth on both
sides.

Energy Security
Energy security and cooperation are pivotal for ensuring stable and sustainable growth. The
bilateral energy relationship covers oil, gas, civil nuclear energy, and clean energy technologies.
Both nations have reaffirmed their commitment to the U.S.–India Energy Security Partnership,
which not only supports traditional hydrocarbon trade but also promotes the development of
renewable energy. New initiatives—such as the launch of the U.S.-India Renewable Energy
Technology Action Platform (RETAP) and the Roadmap to Build Safe and Secure Global Clean
Energy Supply Chains—aim to streamline investments, accelerate green technology deployment,
and enhance energy infrastructure. These efforts are designed to help both countries reduce
reliance on uncertain energy markets while driving forward a clean energy agenda.

Technology and Innovation

Science, technology, and innovation form the backbone of modern strategic partnerships, and the
Indo–US relationship is no exception. The launch of the U.S.-India TRUST initiative exemplifies
efforts to transform bilateral technological collaboration, focusing on artificial intelligence,
quantum computing, and advanced communications. Partnerships between research institutions
—such as between the U.S. National Science Foundation and India’s research bodies—and
collaborative projects in space exploration (for example, the joint work on the NISAR satellite)
demonstrate how both countries are leveraging each other’s strengths. Initiatives like INDUS
Innovation are designed to build bridges between industry and academia, fostering an ecosystem
that nurtures emerging technologies and drives forward shared innovation goals.

Multilateral Cooperation
Beyond bilateral engagements, India and the United States are working together on multilateral
fronts to address regional and global challenges. The launch of the Indian Ocean Strategic
Venture and the coordinated efforts within the India–Middle East–Europe Corridor and the I2U2
Group illustrate the partnership’s multilateral dimension. These forums are critical for promoting
economic connectivity, enhancing regional stability, and providing alternatives to rival
geopolitical initiatives. By collaborating on issues such as global supply chain resilience and
clean energy investments through platforms like the Indo-Pacific Economic Framework (IPEF),
the two nations are setting the stage for a more integrated and secure regional order.

V. Analysis
High level exchange:

High-level exchanges between leaders always play a pivotal role in strengthening bilateral
relationships and enhancing multilateral collaborations. These interactions facilitate direct
communication, allowing for the alignment of strategic objectives, resolution of
misunderstandings, and the initiation of joint initiatives. The personal rapport developed through
such engagements often translates into increased trust and cooperation across various sectors,
including defense, trade, and technology.

In the context of the Quadrilateral Security Dialogue (Quad), which comprises India, the United
States, Japan, and Australia, high-level exchanges significantly contribute to the group's cohesion
and effectiveness. The upcoming Quad Summit, scheduled to be hosted by India in 2025, stands
to benefit from the strengthened India-U.S. ties resulting from these exchanges. The joint
commitment to activate new Quad initiatives, such as shared airlift capacity for disaster response
and enhanced maritime patrols for improved interoperability, underscores the tangible outcomes
of leader-level dialogues.

Furthermore, the collaborative efforts within the Quad framework are bolstered by the mutual
understanding and strategic alignment achieved through these high-level meetings. The
reaffirmation of the Quad's dedication to a free, open, and peaceful Indo-Pacific, as highlighted
in the joint statement commemorating the 20th anniversary of Quad cooperation, reflects the
positive impact of such exchanges.

Defense

The U.S. and India reaffirmed their strong defense partnership by announcing plans for a new
ten-year Framework for the U.S.-India Major Defense Partnership. Both leaders emphasized
expanding defense sales, co-production, and interoperability. Key initiatives include new
procurements and co-production of Javelin Anti-Tank Guided Missiles and Stryker Infantry
Combat Vehicles in India. Additionally, they plan to finalize the acquisition of six more P-8I
Maritime Patrol aircraft to strengthen India’s maritime surveillance in the Indian Ocean Region.

The United States and India reaffirm their commitment to deepening defense cooperation,
recognizing India's pivotal role as a Major Defense Partner and its inclusion in Strategic Trade
Authorization-1 (STA-1). This status grants India access to critical U.S. defense technologies,
enhancing bilateral trade and security collaboration. To streamline defense trade and technology
exchanges, both nations will review arms transfer regulations, including the International Traffic
in Arms Regulations (ITAR), ensuring smooth technology transfer, spare supplies, and
maintenance of U.S.-provided defense systems in India.
As part of their long-term defense collaboration, the Untied Stets and India will negotiate a
Reciprocal Defense Procurement (RDP) agreement to align procurement frameworks and
facilitate reciprocal supply of defense goods and services. They also pledged to accelerate
defense technology cooperation in key areas such as space, air defense, missile systems,
maritime security, and undersea technologies. The U.S. is reviewing policies on releasing fifth-
generation fighter jets and undersea warfare systems to India, marking a significant expansion in
military cooperation.

Trade and investment

The leaders of the U.S. and India have committed to expanding trade and investment to
strengthen economies, create jobs, and enhance national security. They set a goal, "Mission 500,"
to more than double bilateral trade to $500 billion by 2030. To achieve this, they plan to
negotiate a Bilateral Trade Agreement (BTA) by fall 2025, focusing on fair trade terms, market
access, and reducing trade barriers across goods and services.

Both countries have already taken steps to address trade barriers, such as India lowering tariffs
on U.S. products like bourbon, motorcycles, and medical devices, while the U.S. has supported
exports of Indian mangoes and pomegranates. They also aim to increase trade in industrial goods
and labor-intensive manufactured products.

Additionally, both nations are committed to fostering greenfield investments in high-value

industries in both countries.

Energy security

Trump and Modi emphasized the importance of energy security for economic growth, social
well-being, and innovation. They committed to strengthening the U.S.-India Energy Security
Partnership, focusing on oil, gas, and civil nuclear energy. The U.S. supported India’s bid to join
the International Energy Agency and reaffirmed efforts to increase energy trade, with a focus on
crude oil, petroleum products, and liquefied natural gas, to meet the growing needs of both
nations.

They also pledged to enhance investments in oil and gas infrastructure and promote cooperation
between energy companies. In nuclear energy, both sides are committed to advancing the U.S.-
India 123 Civil Nuclear Agreement, which includes building U.S.-designed nuclear reactors in
India, with plans for localization and technology transfer. They welcomed India’s amendments to
the Atomic Energy Act and Civil Liability for Nuclear Damage Act to facilitate collaboration in
nuclear reactor production and deployment, including the development of small modular
reactors.

Technology and innovation

The U.S. and India launched the TRUST initiative to promote collaboration in critical and
emerging technologies, including defense, AI, semiconductors, quantum, biotechnology, energy,
and space. The initiative will focus on protecting sensitive technologies and ensuring the use of
verified technology vendors. Additionally, both countries committed to developing a U.S.-India
Roadmap to accelerate AI infrastructure in India.

They also introduced the INDUS Innovation platform to foster industry and academic
partnerships, particularly in space, energy, and emerging technologies. This effort includes
expanding Indian manufacturing capacity for pharmaceutical ingredients and promoting
investments to reduce drug shortages.

Both nations will enhance cooperation in critical minerals research and development, with the
launch of the Strategic Mineral Recovery initiative to process essential minerals like lithium and
cobalt from industries like mining and oil.

In space cooperation, 2025 will be a landmark year with plans for NASA-ISRO collaboration to
send the first Indian astronaut to the ISS and launch the “NISAR” mission to map Earth's surface
changes. Both countries aim to deepen space exploration, focusing on human spaceflight, space
sustainability, and commercial space ventures, including satellite systems and space tourism.

Multilateral cooperation

The U.S. and India reaffirmed their close partnership as central to a free, open, peaceful, and
prosperous Indo-Pacific region. As Quad partners, they emphasized the importance of ASEAN
centrality, adherence to international law, and support for freedom of navigation. Prime Minister
Modi looks forward to hosting President Trump for the Quad leaders’ Summit, where new
initiatives, including shared airlift capacity and maritime patrols, will be activated.

The leaders also committed to increasing cooperation in the Middle East, investing in
infrastructure and economic corridors, and convening partners from the India-Middle East-
Europe Corridor and I2U2 Group to announce new initiatives in 2025. They launched the Indian
Ocean Strategic Venture to promote economic connectivity and commerce in the region.

The U.S. appreciated India’s role in providing developmental assistance and security in the
Indian Ocean Region and praised India’s future leadership role in securing sea lanes in the
Arabian Sea. Both countries committed to advancing military cooperation and global peace.

On terrorism, the leaders reaffirmed their commitment to fighting terrorism and eliminating
terrorist safe havens. They agreed to strengthen cooperation against groups like Al-Qaida, ISIS,
Jaish-e-Mohammad, and Lashkar-e-Tayyiba, and announced the approval of Tahawwur Rana’s
extradition to India. They urged Pakistan to bring the perpetrators of the 26/11 Mumbai and
Pathankot attacks to justice and pledged to work together to prevent the proliferation of weapons
of mass destruction.

VI. Is the deal favorable? Opinions and

Reactions
Some Groundbreaking Agreements signed post the cold war between the
United States and India (tackling defense and trade)
Year Agreement Area Significance

U.S.–India Civil Nuclear Laid the groundwork for civil

2005 Nuclear
Framework Agreement nuclear cooperation.

123 Agreement (Civil Nuclear Ended India’s nuclear isolation;

2008 Nuclear
Deal) landmark strategic breakthrough.

Allows mutual access to military

LEMOA (Logistics Exchange
2016 Defense bases for logistics; boosts
Memorandum of Agreement)
interoperability.

COMCASA (Communications Enables secure military

2018 Compatibility and Security Defense communication and access to
Agreement) advanced US systems.

ISA (Industrial Security Allows Indian private firms to work

2019 Defense-Industry
Agreement) with US defense contractors.

BECA (Basic Exchange and Enables sharing of satellite and

2020 Defense
Cooperation Agreement) geospatial intelligence data.

Platform to resolve trade issues,

Revived Trade Policy Forum
2021 Trade boost market access, and
(TPF)
investment.

Initiative on Critical and Enhances collaboration on AI,

2022 Emerging Technologies (iCET) Tech/Strategic semiconductors, quantum tech,
(announced) defense innovation.

Tech + Trade + Formal launch of tech partnership,

2023 iCET Launched
Defense elevating economic-strategic ties.

Example 1: The Communications Compatibility and Security Agreement (COMCASA), signed

between India and the United States during their inaugural 2+2 dialogue in September 2018, is a
pivotal defense pact enhancing India's access to advanced U.S. military technology. COMCASA
facilitates the transfer of secure, encrypted communication systems to India, enabling
interoperability with U.S. platforms like the C-130J, C-17, P-8I aircraft, and Apache and
Chinook helicopters. This agreement, tailored specifically for India, underscores the nation's
designation as a 'Major Defense Partner' by the U.S. in 2016 and paves the way for future high-
tech military acquisitions. Despite initial reservations concerning operational autonomy and
existing defense ties with other nations, the pact signifies a significant advancement in Indo-U.S.
strategic relations.
Example 2: The Basic Exchange and Cooperation Agreement (BECA), signed between India and
the United States in 2020, is the final installment among four foundational defense agreements
aimed at enhancing military cooperation. BECA facilitates the sharing of geospatial intelligence,
including maps and satellite imagery, which bolsters India's navigation and targeting capabilities
for precision strikes. This agreement provides the Indian military with access to high-quality
GPS data, topographical and aeronautical information, thereby improving the accuracy of
missiles and other defense systems. The signing of BECA signifies a deepening trust between the
two nations, enabling more intensive collaboration in areas such as interoperability, intelligence
sharing, joint defense research, and weapons production. It also aligns with the broader Indo-
Pacific strategies of both countries, particularly in the context of countering regional threats and
enhancing maritime domain awareness. While India maintains its strategic autonomy and
aversion to formal alliances, the agreement underscores a significant advancement in India-U.S.
defense relations.

Does India need the F-35?

India is at a crucial stage of modernizing its Air Force, with discussions on acquiring advanced
jets like the U.S.-made F-35. However, Air Chief Marshal AP Singh clarified that no formal offer
has been made, and the IAF has not considered procuring the F-35.
Speaking at the India Today Conclave 2025, Singh emphasized the complexity of such
acquisitions, noting factors like operational needs, costs, and infrastructure requirements. The F-
35, renowned for its stealth and AI-driven combat systems, costs around $82.5 million per unit
and demands significant investments in training and maintenance.
India, historically reliant on Russian defense equipment, has been diversifying its defense
partnerships, engaging with the U.S., France, and Israel. President Trump's offer of F-35s is seen
as an effort to strengthen U.S.-India ties and reduce India's dependence on Russian hardware.
However, delays in India’s indigenous fighter programs and regional threats, including China’s
air advancements and U.S. support for Pakistan’s F-16s, complicate decision-making.
India's defense strategy is shaped by its challenging geopolitical environment, facing threats
from both China (LAC area) and Pakistan (LOC area). To address these threats, India requires
cost-effective, versatile military platforms capable of operating in diverse terrains. However, the
F-35, designed primarily for U.S. and NATO operations, may not align with India's specific
needs.
Strategic autonomy is a crucial pillar of India’s defense policy, emphasizing self-reliance and
independent decision-making. Acquiring the F-35 under U.S. pressure could compromise this
autonomy.
The U.S. has offered India F-35 stealth fighters, potentially boosting its airpower alongside allies
like the U.S., UK, and Japan. However, the deal raises concerns over cost, India's ties with
Russia, and its impact on India's indigenous AMCA fighter jet project.
India’s strong defense ties with Russia complicate the deal. The U.S. has strict policies against
selling the F-35 to nations using Russian defense systems, as seen when Turkey was removed
from the F-35 program after purchasing Russia’s S-400 system. India, which also acquired the
S-400 in 2018, may face similar obstacles if the U.S. fears Russian access to F-35 technology.
Additionally, the F-35 is traditionally sold only to NATO members, further complicating India's
potential acquisition.

RDP’s
Reciprocal Defense Procurement Agreements (RDPs) offer India significant opportunities to
modernize its defense capabilities, enhance strategic partnerships, and boost its domestic defense
industry. By facilitating access to cutting-edge technology, fostering defense collaboration, and
streamlining procurement processes, RDPs can help India strengthen its military readiness,
reduce costs, and improve interoperability with global powers like the U.S. However, such
agreements also raise concerns over strategic autonomy, as dependency on foreign suppliers
could limit India’s operational flexibility and influence its defense decisions. Additionally, RDPs
may complicate India’s traditional defense relationships, particularly with Russia, and could
trigger geopolitical tensions with adversarial nations like China. While the economic and
security benefits are promising, India must carefully navigate these agreements to ensure that
they align with its long-term goals without compromising its independence or regional stability.

QUAD, ASEAN and the Indo-Pacific

Prime Minister Narendra Modi and President Donald Trump reaffirmed their commitment to a
free and open Indo-Pacific, emphasizing the strategic importance of the Quadrilateral Security
Dialogue (Quad) and recognizing the central role of the Association of Southeast Asian Nations
(ASEAN) in regional stability. They agreed to activate new Quad initiatives, including shared
airlift capacity for disaster response and enhanced maritime patrols to improve interoperability
among member nations. Both leaders also highlighted the necessity of adhering to international
law, ensuring freedom of navigation, and advocating for peaceful resolutions of maritime
disputes. This collaborative stance underscores a collective effort to counter China's growing
influence in the region, aligning with India's strategic interests and promoting a rules-based
international order.
Illegal Immigration
The two also addressed the issue of illegal immigration, emphasizing a cooperative approach to
manage and mitigate such challenges. Prime Minister Modi expressed India's readiness to
repatriate citizens residing illegally in the United States, stating, "Anybody who enters another
country illegally, they have absolutely no right to be in that country."
This stance aligns with India's commitment to strengthening law enforcement cooperation to
combat illegal immigration networks and organized crime, as outlined in the United States-India
Joint Leaders' Statement. However, the execution of this policy has raised concerns, particularly
regarding the treatment of deported individuals. Reports indicate that deportees have faced
inhumane conditions during transit, including being handcuffed and leg-chained, leading to
criticism from various quarters.
The humanitarian aspects of deportation processes warrant careful consideration to ensure that
actions taken are both effective in managing immigration and respectful of the rights and dignity
of individuals affected.

Realistic Trade
Achieving the ambitious "Mission 500" goal—doubling annual bilateral trade between India and
the United States to $500 billion by 2030—faces significant challenges.
The U.S. administration's proposal to implement "reciprocal" tariffs, aiming to match tariffs
imposed by other countries, adds complexity to trade negotiations. This approach challenges
longstanding trade policies and could destabilize global trade relations. India's consideration of
reducing tariffs on $23 billion worth of U.S. imports seeks to avoid impending reciprocal taxes.
However, such tariff cuts face domestic resistance, particularly concerning the agricultural sector,
which is sensitive to tariff changes. Lowering tariffs may conflict with India's "Atmanirbhar
Bharat" initiative, which aims to bolster domestic manufacturing through protective measures.
Reducing tariffs could expose nascent industries to increased competition, potentially
undermining domestic growth objectives. The U.S. has encouraged India to diversify its defense
procurement by reducing reliance on Russian military hardware in favor of American products.
However, such a shift carries strategic risks, given India's longstanding defense ties with Russia
and potential implications for regional security dynamics.
While "Mission 500" reflects a strong commitment to enhancing economic ties, the path to
achieving this goal is fraught with complexities. Trade imbalances, protectionist policies,
domestic industry concerns, and geopolitical considerations present substantial hurdles.
Realistically, achieving such a significant increase in trade volume by 2030 would require
overcoming these challenges through carefully negotiated agreements that balance domestic
interests with international commitments.
The Energy obsession
President Trump's focus on investing in Ukraine's mineral sector stems from a strategic aim to
secure critical resources, bolster U.S. economic interests, and strengthen geopolitical ties. The
proposed agreement involves establishing a Reconstruction Investment Fund, wherein Ukraine
would allocate a significant portion of its natural resource revenues to repay U.S. wartime aid.
However, this proposal has faced criticism from Ukrainian officials, who perceive the terms as
disproportionately favoring the U.S., potentially undermining Ukraine's sovereignty and
economic autonomy. Experts also question the feasibility of extracting rare earth elements in
Ukraine, citing insufficient data and complex extraction processes. Despite these challenges, the
U.S. continues to pursue a more expansive minerals deal, viewing it as a strategic investment in
Ukraine's future stability and a means to secure a financial stake in the country's post-conflict
reconstruction.

President Trump and Secretary Rubio have declared that the ongoing conflict between Ukraine
and Russia is untenable and must be resolved. The United States is committed to leveraging its
influence to promote peace and implement a sustainable solution. During talks in Jeddah on
March 11, 2025, the Ukrainian delegation expressed readiness to accept a U.S.-proposed 30-day
ceasefire, contingent upon Russian reciprocity. Since Russia's full-scale invasion on February 24,
2022, the U.S. has provided approximately $66.5 billion in military assistance to Ukraine,
totaling around $69.2 billion since the initial 2014 invasion. This includes about $31.7 billion
drawn from Department of Defense stockpiles through 55 Presidential Drawdown Authority
actions since August 2021.

VII. Tariffs and India

In April 2025, the United States introduced a new set of reciprocal tariffs on India as part of a
broader trade strategy under President Trump. These included a universal 10% tariff on nearly all
imports starting April 5, followed by an additional 26% tariff on Indian goods from April 9. This
higher tariff, referred to as a "discounted reciprocal tariff," was aimed at addressing what the
U.S. viewed as India's unfair trade practices, such as high import duties, currency manipulation,
and trade barriers affecting American exports. The policy was authorized by Executive Order
14257, signed on March 31 and announced on April 2.

However, on April 10, the U.S. temporarily suspended the 26% tariff on Indian imports for 90
days, until July 9, to ease pressure on Indian exporters—especially in industries like shrimp and
steel—while both countries continued talks toward a trade deal. This relief did not extend to
China, which remained subject to a 125% tariff. India's Commerce and Industry Minister, Piyush
Goyal, encouraged exporters to remain composed, assuring them that efforts were underway to
secure a balanced agreement.

Later, on April 29, President Trump voiced confidence in the negotiations, stating that talks with
India were progressing well and suggesting that a trade agreement could soon be reached. He
also responded to domestic concerns over disrupted supply chains by issuing another executive
order focused on supporting automakers and alleviating sourcing challenges, further emphasizing
his administration's focus on reinforcing American manufacturing.

VIII. Conclusion
The relationship between Modi and Trump in 2025 triggers profound impact on both domestic
and international geopolitics. Their shared right wing, nationalist ideologies have fostered
personal and charismatic support from the masses and this mutual ideology translates into the
bilateral treaties and initiatives that the two agree upon. The deal ranges from expansive defense
deals and strategic energy partnerships to ambitious trade targets and technological
collaborations. Their growing alliance and relationship seek to solidify a framework for an
enhanced Indo-US cooperation, bolstering their mutual interest in countering regional threats,
particularly from China, and in strengthening the Indo-Pacific order.

Domestically, both leaders have leveraged this relationship to reinform their nationalist
narratives and political campaigns to strengthen their charismatic hold over the masses, with
Modi promoting “Make India Great Again” and Trump’s Make America Great Again (as well as
his “America First” policy) which resonates with their respective bases. This convergence of
political messaging has not deepened bilateral trust but also set precedent for how ideological
alignment can drive international policy.

Overall, the Modi-Trump dynamic in 2025 has been a catalyst for accelerating “strategic”
partnerships while also highlighting the challenges of reconciling nationalist agendas with the
Indian ideas of multilateralism.

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