Modi to Visit US for Official State Visit, to Meet Biden and Discuss Key Issues

Monday, June 19, 2023 Edit this post

Via Syndicated Feed

Cover Image Attribute: The file photo of President Joe Biden and Indian Prime Minister Narendra Modi. / Source: Reuters
Cover Image Attribute: The file photo of President Joe Biden and Indian Prime Minister Narendra Modi. / Source: Reuters


Indian Prime Minister Narendra Modi will visit the United States from June 21-24 at the invitation of President Joe Biden and First Lady Jill Biden. The visit will be Modi's first State visit to the United States, an honor reserved for America's closest allies and friends.


During his visit, Modi will meet with President Biden and other senior US officials to discuss a wide range of issues, including trade, defense, climate change, and regional security. He is also expected to address a joint session of Congress.


Modi's visit comes when India and the United States seek to deepen their strategic partnership. The two countries have a strong economic relationship, with bilateral trade reaching $191 billion in 2022, making the US India's largest trading partner. American companies have invested around $60 billion in India, while Indian companies have invested more than $40 billion in the US. These investments have supported millions of jobs in both countries. 


In February, Air India announced the purchase of more than 200 Boeing aircraft. This historic deal will support over one million American jobs across 44 states. It is likely to be a key pitch of President Biden's re-election campaign.


They are also working together on a number of security and defense initiatives, including the Indo-Pacific Economic Framework and the Quad security alliance. The Quad, a four-country grouping of Australia, India, Japan, and the United States, was initially formed in 2004 in the aftermath of the Indian Ocean tsunami. However, it gained strategic importance in 2017 when the four countries decided to repurpose the group as a counter to China's growing influence in the Indo-Pacific region. 


Modi and Biden have met on several occasions since 2014. In 2014, Biden, then the US Vice President, hosted a special lunch for Modi during his visit to the US. The two also met in 2016 when Modi addressed a joint meeting of the US Congress. In September 2021, they met during Modi's second visit to the US. They also held discussions in Japan for the Quad summit and the G7 summit in Germany in 2022. They met again in Japan in May 2023 for the G7 and Quad meets.



Here are some of the key areas that are expected to be discussed during Modi's visit:


Trade & Technology


Several unresolved trade matters need to be addressed, including visa delays and the withdrawal of India's trade privileges under the Generalized System of Preferences (GSP) program in 2019. The United States has expressed concerns about India's trade policies being excessively protectionist, particularly regarding barriers to foreign investment and inconsistent legal regulations. In recent years, India has increased tariffs, which marks a shift from its previous decades-long policy of reducing taxes.

  • Indo-Pacific Economic Framework (IPEF): New Delhi is expected to be encouraged to become a part of the trade aspect of the US-led IPEF. From the viewpoint of Washington, there isn't currently enough support in Congress for a comprehensive free trade agreement (FTA) with India. Instead, they view the IPEF as a more viable alternative to bilateral agreements. The establishment of the Trade Policy Forum Working Group on Resilient Trade in January 2023 is seen as a preliminary step towards an FTA. 
  • Minerals Security Partnership (MSP): Certain sections of the Indian government are increasingly concerned about India's exclusion from the MSP, a coalition led by the United States. The MSP aims to safeguard the supply chains of crucial minerals and decrease reliance on China. This partnership, initiated last year, has recently expanded to include Italy as a new member, the 11 original countries, and the European Union.
  • Semiconductor: In January, Ajit Doval, the National Security Advisor of India, and Jake Sullivan, his US counterpart, introduced a fresh initiative called the US-India partnership on Critical and Emerging Technologies. Additionally, during the visit of Secretary of Commerce Gina Raimondo in March, the two nations established a collaboration aimed at enhancing the resilience of the semiconductor supply chain through private-sector cooperation. The semiconductor manufacturing agreement could bring about three significant advantages for New Delhi. The primary benefit lies in the potential for India to assume a more prominent position within the global electronics supply chain. This includes the possibility of aligning with other governments worldwide, particularly in terms of the chip manufacturing incentive schemes that have been introduced. Such convergence presents a significant opportunity for India.

Defense


The defense sector is likely to see a number of agreements between India and the United States. These agreements will build on the existing cooperation framework between the two countries. The agreements are likely to cover a range of areas, including armored vehicles, ammunition, and air combat. One possible agreement is for India to manufacture the GE F414 turbofan jet engine under license. This engine would power the indigenous Tejas Mk2 light combat aircraft. Also, Indian officials stated that India is progressing towards acquiring Predator drones from the US for its three services, and discussions are underway to determine the required quantities. The topic of potential drone procurement was raised during the talks. Previously, the plan was to purchase 30 drones (with 10 designated for the Navy, Air Force, and Army, respectively) in a deal estimated to be valued at $3 billion.


Regional Security


The two countries are expected to discuss ways to cooperate on regional security issues, including the Afghanistan situation and China's rise. The two countries share a common interest in maintaining a free and open Indo-Pacific region, and they are working together to address a range of challenges, including China's growing assertiveness in the region.


IndraStra Global Staff has not edited this story, which is auto-generated from a syndicated feed.

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IndraStra Global: Modi to Visit US for Official State Visit, to Meet Biden and Discuss Key Issues
Modi to Visit US for Official State Visit, to Meet Biden and Discuss Key Issues
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