US President Donald Trump's call to Prime Minister Narendra Modi on Tuesday signals a significant effort to reset strained Washington-New Delhi ties, with both nations poised to conclude 'big-ticket' energy and trade deals, including increased Indian imports of US LNG and LPG, and potential cooperation on small modular reactors.
Key Points
- India plans to increase imports of LNG and LPG from the US to diversify its energy basket.
- India and the US are exploring cooperation on small modular reactors under the SHANTI legislation, though US Congressional approval would be required.
- A high-level Indian trade delegation is set to visit the US. US Secretary of State Marco Rubio is expected in India next month.
US President Donald Trump's Tuesday evening phone call to Prime Minister Narendra Modi came at a time when Washington and New Delhi are working to reset ties strained by the White House's tariff policies.
Their efforts will involve an Indian trade delegation visiting the US next week.
Also, India would be increasing its imports of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) from the US, and the two sides are exploring an agreement on small modular reactors (SMRs).
High-Level Discussions and Energy Focus
Modi and Trump spoke for 40 minutes on Tuesday, with American Ambassador to India Sergio Gor later indicating that the two sides are poised to conclude several 'big-ticket' deals soon, including in the energy sector.
Gor said during Tuesday's discussions, the leaders addressed 'some big-ticket deals, including on energy', expected to materialise between India and the US in the coming days and weeks.
According to sources in New Delhi, India is keen to increase its imports of LNG and LPG from the US as part of its process to diversify import basket of energy.
This comes after it faced problems because of the conflict in West Asia and the blockade of the Strait of Hormuz.
Nuclear Energy and Quad Grouping
Foreign Secretary Vikram Misri visited Washington last week, meeting US Secretary of State Marco Rubio and other officials to discuss cooperation in defence, nuclear energy, coal gasification and liquefied petroleum gas exports.
The two sides are looking at nuclear energy cooperation in the context of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI), legislation.
However, any agreement on the issue will require approval from the US Congress.
Rubio is expected to visit India next month, and there is also forward movement on a Quad grouping meeting.
Apart from India and the US, Australia and Japan are members of the Quad.
On Tuesday, External Affairs Minister S Jaishankar spoke to Australian Foreign Minister Penny Wong.
'India will work with like-minded partners to develop supply chain resilience'
On Wednesday, Jaishankar participated in a meeting convened by Japan to discuss supply chain disruptions in the energy markets, where he underlined India's strong commitment to safe and unimpeded transit passage for maritime shipping.
'Attacks on merchant shipping are completely unacceptable. Global growth demands that energy markets are not constricted. As a major energy consumer, India will work with like-minded partners to develop supply chain resilience,' Jaishankar said.
In his social media post in response to Modi's message of his conversation with Trump, Gor posted on Tuesday evening: 'A very positive and productive call, stay tuned.' This echoed the phrase he used after the February 2 call that preceded the announcement of a trade agreement.
New Delhi is of the view that the phone call from the White House was an attempt by the US to repair its ties with India that have been strained.
It was because of the White House's imposition of high tariffs on Indian goods, signs of the Trump administration's growing engagement with Pakistan's military leadership and Washington's failure to achieve its stated objectives in the West Asia war.
Feature Presentation: Rajesh Alva/Rediff
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