India and US Discuss Defense Deals and Trade Relations

India’s deepening defense ties with the US signal a strategic shift. The country is enhancing its military capabilities while navigating trade challenges amid growing geopolitical and economic trends.

India is currently discussing acquiring and co-production combat vehicles with the United States and finalizing a deal for fighter jet engines. These talks are taking place as Prime Minister Narendra Modi prepares to meet President Donald Trump this week.

As the world’s largest arms importer, India has traditionally relied on Russia for its defense needs. However, last month, President Trump urged Prime Minister Modi to increase purchases of U.S.-made security equipment and work towards establishing a more equitable trade relationship.

After he had departed for France and the United States, Modi expressed his anticipation of the meeting with his friend President Trump.

The upcoming visit presents a valuable opportunity to build upon the achievements of their collaboration during his first term and establish a forward-looking agenda to strengthen and expand the partnership. This will encompass key areas such as technology, trade, defense, energy, and supply chain resilience.

According to government officials, Prime Minister Modi is preparing further tariff reductions in anticipation of the meeting with President Trump. These reductions could enhance American exports to India and potentially avert a trade dispute.

India and the United States have engaged in extended discussions regarding the co-production of Stryker combat vehicles manufactured by General Dynamics and utilized by the U.S. Army. The two nations are also working towards finalizing contract negotiations for the co-production of fighter jet engines for the Indian Air Force in India. This agreement, reached in 2023, is expected to be concluded soon, according to two sources who requested anonymity due to the confidentiality of their information.

Defence Production Secretary Sanjeev Kumar intended to expedite the transaction with the United States, stating that efforts are underway to achieve this goal. However, he did not provide further details.

According to sources, officials from India’s state-owned Hindustan Aeronautics Ltd (HAL) are scheduled to meet with US representatives and General Electric's aerospace division, the manufacturer of GE-414 engines, in the coming weeks to finalize the deal by March.

GE, HAL, General Dynamics, the US embassy in New Delhi, and India's defense and foreign ministries have yet to respond to requests for comment.

According to two sources who requested anonymity, New Delhi has initiated discussions with the Trump administration regarding the potential acquisition of Stryker vehicles following their demonstration for the Indian Army late last year.

The plan involves India procuring several hundred Strykers equipped with a mounted anti-tank guided missile system. The sources noted that plans are also in place to co-produce these vehicles in collaboration with a state-run company.

Whether these potential deals will be part of the discussions between Prime Minister Modi and President Trump remains unclear. The talks come amid concerns over Trump's recent warning regarding the new 25 percent tariffs on all steel and aluminum imports into the United States. This move could have implications for Indian companies.