Prime Minister Narendra Modi has a way with acronyms. This time it is MIGA, coined during his ongoing visit to the US and his first face-to-face meeting with President Donald Trump after the latter began his second presidential term.
On Friday, PM Modi posted on X after wrapping up a productive visit: “President Trump often talks about MAGA. In India, we are working towards a Viksit Bharat, which in American context translates into MIGA. And together, the India-USA have a MEGA partnership for prosperity!”
MAGA is Trump’s prime slogan of ‘Making America Great Again’. Applying the same logic, MIGA would ostensibly stand for ‘Make India Great Again’.
Seeking to continue with the deep understanding and collaborative relationship that found reflection during the Trump@1.0 administration, a detailed outcome statement and a joint declaration were laid out.
One of the key outcomes was the unveiling of a new initiative – the 'U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century' where the two leaders agreed to ink a new ten-year framework for the India-US major defence partnership in the 21st century within the framework of the Comprehensive Global Strategic Partnership that would extend across space, air defence, missile, maritime and undersea technologies.
Two key points stand out here. First is a review of the respective arms transfer regulations, and second to open negotiations for a Reciprocal Defense Procurement (RDP) agreement “to better align their procurement systems and enable the reciprocal supply of defense goods and services”. This would mean a huge boost to India’s plans to export more defence and military equipment.
Significantly, the policy review will also include releasing fifth-generation fighter aircraft and undersea systems to India. Already the South Asia region is witnessing an asymmetry in air force capabilities with the deployment of Chinese J-20 fighter aircraft to air bases near the Indian border.
At the same time, what impact the buying of US F-35 fifth-generation fighters would have on India’s Advanced Medium Combat Aircraft (AMCA) project is something that the government will persevere to analyse. However, it would serve the Modi government’s plan to diversify its sourcing of foreign military products which currently is dominated by Russian legacy systems and equipment.
What is perhaps of more significance is the announcement of a new initiative called the ‘Autonomous Systems Industry Alliance (ASIA)’ aimed at scaling up industry partnerships and production in the Indo-Pacific.
On trade, the biggest takeaway is 'Mission 500' or the ambitious target to more than double the total bilateral trade to $500 billion by 2030. In 2023, the Indo-US bilateral trade was valued at $190 billion.
What will facilitate this is the plan to increase market access, reduce tariff and non-tariff barriers, and deepen supply chain integration.
ALSO READ: Donald Trump promises India F-35 fighter jets but Elon Musk thinks the aircraft is obsolete
The joint statement said: “Both sides also pledged to collaborate to enhance bilateral trade by increasing US exports of industrial goods to India and Indian exports of labor-intensive manufactured products to the United States. The two sides will also work together to increase trade in agricultural goods.”
Of course, concerns remain on the tariffs issue with Trump seeming dogged in his reciprocal tariff plan.
On the energy front, Modi and Trump re-committed to the US-India Energy Security Partnership, including in oil, gas, and civil nuclear energy particularly in the backdrop of energy security being fundamental to economic growth and with both India and the US positioned as leading producers and consumers of energy.
Another significant new development is the US-India TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative wherein a roadmap will be prepared for collaboration “to promote application of critical and emerging technologies in areas like defense, artificial intelligence, semiconductors, quantum, biotechnology, energy and space.”
In order to intensify efforts to deepen cooperation in the exploration, beneficiation, and processing as well as recycling technologies of critical minerals, the leaders announced the launch of 'Strategic Mineral Recovery' initiative, a new US-India programme to recover and process critical minerals (including lithium, cobalt, and rare earths) from heavy industries like aluminium, coal mining and oil and gas.”
On the infrastructure front, PM Modi and President Trump agreed 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.” This acquires deep significance particularly because of China’s ambitious ‘Belt and Road Initiative’ which seeks to connect Asia, Africa, and Europe through land and maritime networks.
But from the Indian strategic positioning point of view, several concerns remain that will test the enhanced association between India and the US.
India is a founding member of the BRICS platform which includes China and Russia. BRICS has been vocal about a ‘de-dollarisation’ move to erode the global weightage and influence the US dollar has.
Another concern is the tariffs issue. How strong will US action be against the Indian tariff barrier? Trump’s recent declarations run counter to the enhanced India-US bonhomie.
While PM Modi has completed a productive tour in the US, the ‘devil’ lies in the details and a lot of details will have to be worked out before India can really commit itself.