The visit will also include talks with prominent US business leaders, including Tesla CEO Elon Musk.
Trade and tariff in focusIndia and the US are expected to have in-depth discussions about trade and tariffs, particularly regarding the phasing out of import duties. New Delhi has already made significant strides in aligning with Trump’s trade priorities by reducing tariffs on several key US imports, including high-end motorcycles, a move aimed at benefiting American auto majors such as Harley-Davidson.
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced a reduction in customs duties on luxury goods such as high-end motorcycles, cars, and smartphone parts, benefitting US companies like Harley-Davidson, Tesla, and Apple. Importantly, duties on fully imported motorcycles have dropped from 50% to 40%.
The FM also eliminated customs duties on lithium-ion batteries for electric vehicles (EVs), which could encourage US companies like Musk’s Tesla to expand their operations in India. Furthermore, duties on mobile phone battery production equipment have been reduced, providing a boost to local manufacturing and benefiting major players like Apple, which holds a significant market share in India.
New Delhi is also prepared to negotiate a limited trade deal with the US to address market access issues, following unsuccessful attempts during Trump’s first term. Bilateral trade between the two countries surpassed $118 billion in 2023 and 2024, with India posting a trade surplus of $32 billion, per data from Reuters.India is also reviewing tariffs on over 30 items, including luxury cars and solar cells, as part of efforts to strengthen economic ties with the US.
Immigration and H-1B visa discussions
Immigration is another key issue on the table, with India addressing US concerns about unlawful migrants.
Following US deportation orders, India has repatriated more than 100 citizens, and discussions will focus on managing the return of additional Indian nationals facing deportation.
Modi is expected to advocate for expanding H-1B visas, which are critical for the Indian IT workforce. What may help India’s cause is that Trump has expressed support for the H-1B visa programme, which plays a pivotal role in bringing skilled foreign workers, particularly in the tech sector, to the US. India accounts for the majority of H-1B visa recipients and will be keen to ensure the continuity of this programme.
Defence and energy cooperation
Modi’s visit will also focus on showing India’s intention to increase its purchases of defence equipment from the US, including fighter jets and drones. India is in the process of acquiring 31 drones from the US, valued at approximately $4 billion, and has issued a global tender for 114 fighter jets. Additionally, the two countries will discuss cooperation on nuclear energy, particularly the development of small modular reactors.
Recent changes to India’s nuclear laws are expected to attract US companies like GE Hitachi Nuclear Energy, Electricite de France SA, and Westinghouse Electric Co. to participate in supplying reactors for large-scale power plants. India is also looking to strengthen its partnership with the US in advanced nuclear technologies, which will be a key focus of discussions during the visit.
