The US and India have been edging closer together for years. Washington sees India as a key regional counterweight against a more assertive China, while for New Delhi, the US has become an increasingly important source of foreign investment and a partner for trade and security.

As two-way trade expands, India’s surplus is growing. President Trump is expected to press Prime Minister Narendra Modi to lower tariffs.

The Trump administration wants to bring down the U.S. trade deficit with India and hopes to have a fair bilateral trade deal with New Delhi in place in 2025, Trump administration officials said ahead of a summit between President Donald Trump and Indian Prime Minister Narendra Modi on Thursday.

India’s top officials said they will continue to cut import taxes as the government looks to work around US President Donald Trump’s plan to impose reciprocal tariffs on trading partners.

Trump's plan to pursue reciprocal tariffs on all countries would drive up inflation if fully carried through, economists say.

Experts suggest that if India negotiates a tariff reduction agreement, it could benefit from lower U.S. tariffs on these products, making Indian exports more competitive.