U.S. President Donald Trump has urged Indian Prime Minister Narendra Modi to purchase more American-made weapons as part of efforts to rebalance trade between the two nations. In a call described by the White House as “productive,” Trump emphasized the need for India to increase its procurement of U.S. security equipment while moving toward a “fair bilateral trading relationship.”
Trump’s push comes as the U.S. seeks to strengthen ties with India as a strategic counterbalance to China. However, the bilateral relationship, while close, remains transactional, with friction points such as India’s trade surplus, imports of Russian oil, and immigration flows. Analysts told the Financial Times that Trump’s approach under his new term would likely maintain strong ties with New Delhi but require concessions from India.
The U.S. is India’s second-largest trading partner, with New Delhi recording a $35 billion trade surplus in 2024, according to India’s commerce ministry. Trump has previously criticized India as a “big abuser” on trade and has threatened to impose tariffs on BRICS countries, including India. Despite this, Modi referred to Trump as a “dear friend” in a social media post, reaffirming their commitment to a trusted partnership.
India, traditionally reliant on Russian arms, is diversifying its defense procurement to include the U.S. and France as part of Modi’s push to modernize India’s military and reduce dependence on foreign suppliers. The Indian government aims to boost domestic defense production to $35 billion by 2030, with significant upgrades needed in fighter jets, submarines, tanks, and helicopters to counter China’s military capabilities.
The two leaders also discussed enhancing security cooperation in the Indo-Pacific region and strengthening the Quad alliance, which includes Japan and Australia. Modi is expected to visit the White House in February, marking one of the first foreign visits under Trump’s new term.
Meanwhile, India is balancing its U.S. ties with cautious engagement with China. During a concurrent visit to Beijing by India’s foreign secretary, the two nations agreed to resume direct passenger flights after years of suspension following the 2020 border clashes.
Immigration was another key topic during the call, with Trump seeking Modi’s cooperation in addressing the return of illegal Indian nationals from the U.S. Indians make up the third-largest group of unauthorized immigrants in the country, according to Pew Research Center data.
