Trump Modi Meet: India Likely To Buy More US Defense Tech, Natural Resources

US President Donald Trump and Indian Prime Minister Narendra Modi aim to lay the groundwork for a bilateral trade agreement and will discuss ways to strength cooperation on defense and energy when they meet Thursday, according to senior administration officials. 

Officials also said they aim to have some form of a trade pact between the two economies in place this year. 

The officials, who briefed reporters Thursday on condition of anonymity, cast discussions to have India purchase more US defense technology and natural resources as steps that would help address the trade deficit - a major concern for Trump who has vowed to use his tariff policies to reduce imbalances in global trade. 

Senior administration officials highlighted efforts to address trade concerns between the two nations, as well as efforts to boost military sales to New Delhi, secure a new defense framework, and work to supply India with energy exports as critical components of the talks. 

Modi has sought to shift the country's reliance on coal as a source of power, creating an opening for liquefied natural gas exports from the US that can help balance trade between the two nations.

The meeting between Trump and Modi comes as trade tensions between the two are poised to intensify with the US president intending to announce sweeping reciprocal tariffs on nations that have high import duties. Trump has said he will unveil those measures just hours before he is set to welcome Modi to the White House. 

While the White House has not shared details on the tariff plan, including how officials will calculate the rate, and whether there will be any exclusions, sweeping reciprocal tariffs threaten to have a significant impact on India, a nation with high duties.

Trump and Modi have enjoyed warm relations in the past. The two men last met five years ago when the Indian leader threw an extravaganza for the US president before a crowd of 100,000 people. Thursday's visit will be a test of whether the head of the world's most populous nation can ease US worries about trade and protect market access to his country's largest trading partner.

Trump has repeatedly singled out India and its high tariff barriers, a message amplified by economic aide Kevin Hassett, who told CNBC this week that India's levies on US imports were “enormously high” and that Modi “has got a lot to talk about.”

Ahead of his meeting with Trump, Modi has moved quickly to try and assuage Trump's concerns with numerous concessions, including cuts to duties on items including textiles, motorcycles and luxury cars. And India has pledged to accept flights of deported migrants, a top priority for Trump who is carrying out a crackdown on illegal migration; buy more US energy; and maintain the dollar as its trading currency. 

One of the US officials said the moves are modest but have been well-received.

Officials on Thursday sought to highlight India as a critical partner in the region, and said that some of the announcements Thursday would touch on semiconductors, critical minerals and efforts to bolster global supply chains. And they said Trump would continue to work with the Quad — a regional grouping including the US, India, Australia and Japan — an effort to provide a bulwark to Chinese economic and military influence in the Indo-Pacific.