What’s at Stake for Trump and Modi, and What Should Be Achieved

Few countries are as well placed as America and India to row together in 2025 and beyond. They do not have the political, social, and economic challenges faced by other major powers, and our demographics, dynamism, innovation, and economic growth make us the leaders of global growth. Our leaders enjoy a special and privileged relationship, as shown by PM Modi’s visit soon to Washington, so early in President Trump’s second term.  

So what’s at stake? Simply put, the future of freedom as a governing software that delivers better for its citizens’ aspirations than any other. Given China’s economic and demographic challenges, Russia’s bloody war in Ukraine, and Europe’s daunting agenda confronting regulatory overreach, Delhi and Washington have a singular opportunity to remind the world that free and open societies are optimized to ensure growth, vitality, and prosperity. Our free societies must get “it” right, lest our critics and enemies try to eclipse us and impose a darker global order. And the most vital criterion for our success is economic growth, which fuels the prosperity and happiness of our people. If America and India can add octane to their GDP growth by working well with each other, it will increase our lead in the great power competition. We can and should make America and India the pace-setters for global prosperity and expansion. 

So what needs to get done? Both sides need to abandon bureaucratic and political rigidities that entrap us; shibboleths deeply cherished in both capitals need to be skewered, and there is no better moment or opportunity than right now, in the early days of Trump Two. India needs to listen carefully to U.S. concerns about tariff and non-tariff barriers that hold U.S. firms back. America needs to treat India as a trusted technology partner on artificial intelligence, quantum computing, semiconductors, and defense. India needs to create a more level playing field for U.S. investors and businesses in India, embracing pro-growth tax and regulatory reforms. America has to find a way to expand the benefit it derives from India’s skilled workers who add talent and brains to our industrial might and at our operations around the world. India is right to take back undocumented workers subject to deportation, and America is smart to prioritize the Quad to signal the importance of India as we grapple with our most challenging strategic problems. 

If both sides can see the benefit of overcoming our reticence and deepening our collaboration and convergence, we can break through the plateau that has stalled our economic relations. We should be ambitious and hammer together a mutually beneficial, focused trade deal that can enhance investment and deals in both directions. We need more American oil, gas, soybeans, and fighter jets headed to India. 

Sticking points in both bureaucracies on defense sales–especially fighters–require both sides to compromise yield ground and be creative. We welcome more Indian investment in America to help our energy and critical minerals sectors, to create more jobs, and to upskill more of our people to benefit from the digital economy. American companies in India need to be viewed not as unwelcome competition but as committed multi-decade investors who are helping India become a globally competitive player in e-commerce, fintech, defense, and energy.  America should view India as a crucial pillar in minimizing supply chain risks for computer chips, medicines, electronics, refined hydrocarbons, and other essential items.  

The Trump-Modi summit can be a huge win-win for both sides if we can frame the contours of a meaningful, substantial, impactful bilateral deal that fuels our economic growth. The art of the deal is the art of the possible, and with the world’s two greatest democracies, virtually everything is possible. We have the most powerful and robust systems of government on earth, and we can tap the genius of our 1.8 billion citizens to drive optimal outcomes for our citizenry amidst the many risks of the world in the second quarter of the 21^st century. I wish President Trump and Prime Minister Modi resounding success in lifting the ambitions of our two nations and reinforcing our strategic, economic, and technological partnership. 

About the authors

Ambassador (ret.) Atul Keshap

Ambassador (ret.) Atul Keshap serves at the U.S. Chamber of Commerce as President of the United States India Business Council, whose members are dedicated to the growth of commercial ties between the world's two largest democracies.

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