Modi-Trump’s big deal: At the recent meeting between American President Donald Trump and Prime Minister Narendra Modi, the United States made a historic offer to provide the nation with the Lightning II F-35 combat plane. With the F-35 being touted as the world’s most deadly, resilient, and networked fighter aircraft, this plan has generated a lot of attention, especially in India. Let’s look closely into this Modi-Trump’s big deal!
Modi-Trump’s Big Deal Details
On Thursday, February 14, 2025, i.e., today, U.S. President Donald Trump proposed to sell India cutting-edge fighter jets as he and Prime Minister Narendra Modi pledged to increase commerce, reviving a relationship that contradicts the latest punitive policy of the U.S. administration toward much of the globe.
The fifth-generation stealth fighter, the F-35, is well-known for its capacity to fly at supersonic speeds without being seen. It has outstanding information fusion capabilities, open architecture, powerful sensors, and cutting-edge electronic warfare technologies.
Key Highlights of Modi-Trump’s Big Deal
The meeting between Donald Trump and Narendra Modi was highly anticipated, and it ultimately did not let anticipators down. At their meeting at the White House, the two leaders of the world talked on a variety of subjects, including human trafficking, commerce, and defense. Let’s list all the key highlights of this deal for better understanding.
- Trade and tariff concerns were the main focus of the meeting.
- Trump declared India’s import taxes “very unfair and strong.”
- Trump also stated that his government hopes to increase U.S. exports (energy) to India in order to reduce the $50 billion trade gap with the country.
- Trump and Modi also decided to work on a trade-related agreement, which Modi stated he anticipates finishing later this year.
- By 2030, Modi pledged to increase trade (bilateral) with Washington twofold to $500 billion.
Impact of Modi-Trump’s Big Deal on the Stock Market
Reliance Industries, Sun Pharma, and HDFC Bank were the index heavyweights that caused the Indian benchmark indices to reverse their gains and trade lower today following an initial spike fueled by optimism over tariff talks between the US and India. However, according to market analysts, any disappointing news regarding tariffs is largely priced in by the recent stock market decline.
The markets might experience a short-term relief bounce if India can engage in talks, and the same has been reflected in the market’s opening session today. Out of the Sensex pack, Adani Ports, Sun Pharma, NTPC, and Zomato opened with losses, while HCL Tech, ICICI Bank, Tech Mahindra, Maruti Suzuki, Infosys, and Tata Steel opened with gains.
Conclusion
The historic deal between Modi and Trump took place today. Despite this Modi-Trump’s Big Deal, analysts state that new tariffs against India might further erode market sentiment; however, the extent of this would depend on the fine print of the tariff.
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