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U.S. and India Strengthen Strategic Partnership with New Defense, Trade, and Energy Initiatives

The United States and India have reaffirmed their commitment to deepening their Comprehensive Global Strategic Partnership following an official visit by Indian Prime Minister Narendra Modi to Washington, D.C., hosted by U.S. President Donald J. Trump on February 13, 2025. The leaders launched the “U.S.-India COMPACT,” a new initiative aimed at enhancing cooperation in defense, trade, and technology.

Defense Cooperation

The two nations announced plans to sign a ten-year defense framework agreement to strengthen military collaboration. The U.S. will expand defense sales to India, including co-production of Javelin Anti-Tank Guided Missiles and Stryker Infantry Combat Vehicles. Both sides will streamline defense trade regulations and explore new agreements for reciprocal procurement. Additionally, the U.S. will review its policy on releasing advanced military technology, such as fifth-generation fighter jets and undersea systems, to India. A new initiative, the Autonomous Systems Industry Alliance (ASIA), was introduced to boost industry partnerships in emerging defense technologies.

Trade and Investment Expansion

The leaders set a new bilateral trade goal of $500 billion by 2030 under the “Mission 500” initiative. They announced plans to negotiate a multi-sector Bilateral Trade Agreement by late 2025 to improve market access, reduce trade barriers, and enhance supply chain integration. India has taken steps to lower tariffs on key U.S. exports, while the U.S. has facilitated greater Indian agricultural exports. Both sides also pledged to increase investment in high-value industries, with Indian companies investing over $7.35 billion in the U.S., supporting thousands of jobs.

Energy Security and Cooperation

Recognizing the importance of stable energy markets, both nations reaffirmed their commitment to the U.S.-India Energy Security Partnership. They pledged to collaborate on enhancing hydrocarbon production, maintaining strategic petroleum reserves, and ensuring affordable energy access.

This visit marks a significant step in strengthening U.S.-India ties, reflecting a shared vision for security, economic growth, and technological advancement.

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