Civil nuclear push, ‘Mission 500’, 10-year defence pact: What Modi, Trump agreed on; Key takeaways

Prime Minister Modi and US President Donald Trump on Friday launched the "US-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century”, under which the two sides committed to a "results-driven agenda with initial outcomes this year to demonstrate the level of trust for a mutually beneficial partnership."

Civil nuclear deal

Modi and Trump vowed to move forward with plans to work together to build American-designed nuclear reactors in India under the landmark civil nuclear deal.

The civil nuclear deal, signed under the Manmohan Singh-led UPA government in 2008, changed India's overall engagement with the US, paving the way for building the bonds of a strategic partnership.

"The leaders announced their commitment to fully realise the US-India 123 Civil Nuclear Agreement by moving forward with plans to work together to build US-designed nuclear reactors in India through large-scale localisation and possible technology transfer," according to a joint statement.

During Union Budget presentation on February 1, finance Minister Nirmala Sitharaman announced plans to amend India's nuclear liability law as well as the Atomic Energy Act as certain clauses have emerged as hurdles in the implementation of the civil nuclear deal.

The Atomic Energy Act of 1962 prohibits investments by the private sector in nuclear power plants.

"Both sides welcomed the recent Budget announcement by Government of India to take up amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLNDA) for nuclear reactors, and further decided to establish bilateral arrangements in accordance with CLNDA, that would address the issue of civil liability and facilitate the collaboration of Indian and U.S. industry in the production and deployment of nuclear reactors," the statement said.

In January, the US lifted Cold War-era sanctions on the Bhabha Atomic Research Centre (BARC), the Indira Gandhi Centre for Atomic Research (IGCAR), and Indian Rare Earths Limited (IREL), in a major step toward advancing civil nuclear cooperation between the two countries.

Defence cooperation and military ties

The two leaders reaffirmed their commitment to bolstering defence collaboration with the announcement of a new ten-year framework for the US-India Major Defence Partnership.

Welcoming the integration of US-origin defence items into India's inventory, they announced plans to pursue new procurements and co-production arrangements for "Javelin” Anti-Tank Guided Missiles and "Stryker” Infantry Combat Vehicles in India. The joint statement also indicated India’s plan to revive the proposal to procure six additional P-8I Maritime Patrol aircraft, which can hunt submarines lurking in the deep oceans.

The two sides will negotiate a Reciprocal Defense Procurement (RDP) agreement to “better align their procurement systems and enable the reciprocal supply of defense goods and services.”

Expanding trade and investment

The leaders set a new “Mission 500” goal to double bilateral trade to $500 billion by 2030.

A key component of this effort will be negotiations for a Bilateral Trade Agreement (BTA), expected to take shape by the fall of 2025, focusing on market access and tariff reductions.

The US welcomed India’s recent measures to reduce tariffs on select US products, including bourbon, motorcycles, and certain agricultural goods.

The two sides pledged to collaborate to enhance bilateral trade by increasing US exports of industrial goods to India and Indian exports of labour-intensive manufactured products to the United States

Technology and innovation

Modi and Trump announced the launch of the “US-India TRUST” (Transforming the Relationship Utilizing Strategic Technology) initiative, aimed at fostering collaboration in defence, artificial intelligence, semiconductors, quantum computing, and biotechnology.

As part of this initiative, the two countries will finalise a roadmap for accelerating AI infrastructure in India by the end of the year.

The INDUS Innovation bridge was also launched to boost investment in space and emerging technologies.

The statement also confirmed plans for an Indian astronaut to visit the International Space Station through a NASA-ISRO partnership and early launch of the joint "NISAR” mission to systematically map changes to the Earth’s surface using dual radars.

“The leaders called for more collaboration in space exploration, including on long duration human spaceflight missions, spaceflight safety and sharing of expertise and professional exchanges in emerging areas, including planetary protection,” it said.

Multilateral and regional cooperation

The joint statement reaffirmed the strategic importance of the Indo-Pacific region, with a commitment to upholding freedom of navigation and maritime security. President Trump welcomed Prime Minister Modi’s plans to host the next Quad Summit in New Delhi, ahead of which the leaders will activate new initiatives on shared airlift capacity to support civilian response to natural disasters and maritime patrols to improve interoperability.

The leaders also announced efforts to increase cooperation in the Middle East through the India-Middle East-Europe Corridor and pledged to strengthen ties with key partners in the Indian Ocean region. They plan to convene partners from the India-Middle East-Europe Corridor and the I2U2 Group within the next six months in order to announce new initiatives in 2025.

People-to-people ties

Recognizing the role of Indian students and professionals in the US economy, both leaders committed to streamlining visa processes and legal pathways for skilled workers. New collaborations between US and Indian universities, including offshore campuses of US institutions in India, were announced to foster innovation and workforce development.

Both sides also pledged to crack down on illegal immigration networks and organised crime syndicates, while facilitating short-term business and tourism travel between the two countries.