By fits and starts

India and the US are close to announcing a big new defence deal involving Boeing, says US Ambassador to India Sergio Gor. “When foreign leaders show up and meet the President, Boeing is usually on the agenda, because we care about Boeing, we care about taking you to the next level and making sure that these countries are buying the best and most efficient planes in the sky.” The two nations are close to signing a bilateral trade agreement (BTA), he adds.

India had advanced plans to procure additional Boeing P-8I Poseidon aircraft for the Indian Navy to bolster its long-range maritime surveillance and anti-submarine warfare capabilities. While the deal faced geopolitical pauses, negotiations and strategic acquisitions remain in play for the long-term fleet even now.

Boeing Defence India has signed a landmark agreement with GMR Aero Technic to conduct Phase-56 heavy maintenance checks on the Indian Navy's P-8I maritime patrol aircraft fleet at GMR's facility in Hyderabad in May this year. Also, India’s defence ministry has signed a Rs413-crore contract with Boeing for depot-level inspection and maintenance of P-8I aircraft, supporting local objectives like ‘Make in India’ and ‘Atmanirbhar Bharat.’ In addition, through a joint venture with Tata, Boeing’s production facility in Hyderabad would serve as the sole global producer of fuselages for Boeing AH-84 Apache Helicopter.

Gor feels opportunities to work together still exist between India and the US. “One could pick any of the sectors – say, AI, technology, aviation – and the two nations would have the potential to come together,” affirmed Gor, while addressing the US-India Strategic Partnership Forum (USISPF). “And I hope to build upon it and set the relationship on a path for several decades ahead. And, so, for everyone here who takes part in this, think of this as a long-term project. This is now for one year or two years, but what we sow now will continue to sustain us decades ahead”.

Meanwhile, Marco Rubio, US Secretary of State, has said that President Trump plans to visit India early next year. India and the US are also inching closer towards finalising a BTA. He said he would visit India before the end of the year to prepare for President Trump's visit.

Trump last visited India in February 2020, when he and Prime Minister Modi addressed the ‘Namaste Trump’ rally in Ahmedabad before holding bilateral talks in New Delhi. He had met Prime Minister Narendra Modi in France on the sidelines of the G7 Summit before that.

An interim BTA?

“We are hoping to finalise a trade deal and are on the verge of getting it done, and it’s positive,” Rubio said. PM Modi is likely to visit the US in December for the G20 Summit. Meanwhile, both nations are pushing for an interim BTA to be finalised by the end of July, after Trump’s 10 per cent global tariffs expire. In June, Commerce Minister Piyush Goyal, US Trade Representative Jamieson Greer and US Ambassador Sergio Gor met in Delhi to hold discussions and review the focus on non-tariff barriers, market access and economic security. The base goal of the BTA framework remains focused on eventually scaling annual bilateral goods and services to $500 billion. At present, the total trade is about $220 billion.

Rubio said India was a close partner and ally of the US and the relationship between PM Modi and President Trump couldn’t be closer. The US and India are also key members of the Quad, alongside Japan and Australia, with the four nations expanding co-operation on regional security, critical technologies, resilient supply chains and maritime security. Both Washington and New Delhi have described these ties as among the defining strategic relationships of the 21st century.

Recognising the growing significance of India-US economic partnership amid evolving global trade dynamics, both countries have reiterated their shared goal of expanding bilateral trade, fostering innovation and building resilient, trusted supply chains, says a statement issued by the ministry for commerce.

Notwithstanding the glitches in the initial part of this year, where tariffs were imposed, India and the US are inching towards achieving growth and stability in the years ahead. Both nations have lots at stake and also lots to gain from each other with this partnership.