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

In recent years, Delhi has shown a growing willingness to pursue trade deals. The Trump administration may prove to be a more willing interlocutor than the Biden administration, which imposed heavy environmental and labour-related conditions on new trade agreements.

As PM Modi prepares to meet President Trump, crucial topics like trade tariffs, immigration policies, and defence cooperation are on the agenda. With rising tensions and the backdrop of deportations,

India is in talks with the United States for the purchase and co-production of combat vehicles as well as finalising a fighter jet engine deal, people familiar with the matter said. Trump asked Modi in a call last month to buy more U.S.-made security equipment and move "toward a fair trading relationship".

With India’s steel industry already facing global competition, higher US tariffs could lead to a slowdown in exports as well as increased production costs, according to the Financial Times.

India has benefited from the decline of the U.S.-China relationship and is viewed as a possible ally in countering China’s rise politically

Underlining that Modi will be meeting Trump within weeks of his taking office, Indian foreign secretary Vikram Misri said India-U.S. ties are solid and that “this has been one of our strongest international partnerships.

Amid Donald Trump's repeated statements threatening tariffs on imported goods into the US, the Indian Prime Minister's visit to the US may seek to address this issue. The Indian side may attempt to resolve tensions by expanding imports from the US.