NEW DELHI: US President Donald Trump will be accorded the biggest public reception given to any foreign leader in years during his visit to India beginning on Monday, officials say, one that could help paper over the two countries’ growing friction over trade.
Close political and security partners, India and the US have hit each other with retaliatory tariffs. Over the past month they have engaged in intense negotiations to produce a mini trade deal, but officials say it remains elusive.
The two sides have been arguing over US demands for access to India’s huge poultry and dairy markets, Indian price controls on medical devices such as stents and stringent local data storage rules that US companies say will raise the costs of doing business.
Prime Minister Narendra Modi’s government has sought restoration of trade concessions that Trump withdrew in 2019 and greater access to US markets for its pharmaceutical and farm products. Above all, it says that Trump should not treat India on par with China, whose economy is five times larger.
At an event in Las Vegas Trump gave mixed messages about prospects for a trade deal with Modi.
“We’re going to India and we may make a tremendous deal there. Maybe we’ll slow it down, we’ll do it after the election,” he said.
Hundreds of thousands of people are expected to gather in Modi’s political hometown of Ahmedabad to greet Trump for a road show leading to a rally in a cricket stadium with a capacity of over 100,000.
It was possible the two sides could still announce some specific trade measures absent a broader deal, Richard M Rossow, an India expert at the Centre for Strategic and International Studies, said.
“There’s a modest package of things that India could put on the table that I don’t think would hurt the government’s domestic base so dramatically.”
These could include a further reduction in import tariffs on Harley-Davidson motorcycles that Trump has often spoken about, he said.
The two countries are also expected to announce India’s purchase of 24 SeaHawk naval helicopters from Lockheed Martin in a deal estimated to be $2.6 billion as well as a follow-on order for six Apache attack helicopters.
The US has become one of India’s top arms suppliers, with $18bn worth of sales over the last 15 years, edging out traditional supplier Russia.
Trump and Modi are expected to discuss a wide range of issues including trade, 5G telecoms, counter-terrorism, energy security, religious freedom, the rule of law and the importance of the Indo-Pacific region, a senior Trump administration official said.
US energy firm Westinghouse is also expected to sign a new agreement with state-run Nuclear Power Corporation of India for the supply of six nuclear reactors, kickstarting a long-running project.