India and the United States on Tuesday announced defence deals worth over 3 billion dollars and made progress on a comprehensive trade agreement. President Donald Trump held discussions with Prime Minister Narendra Modi in New Delhi on areas including cooperation in energy and technology sectors as well as counter-terrorism.
The two also held talks on the security situation in the region including in Afghanistan and Pakistan and on stability in the Indo-Pacific region.
Trump said both sides decided to expand defence cooperation and India had decided to purchase advanced military equipment worth over 3 billion dollars, including helicopters.
"The India-US relationship is one of the most significant partnerships of the 21st century. That is why today President Trump and I have decided to raise our relationship to the level of a comprehensive global strategic partnership," Modi told reporters alongside Trump following the discussions.
Trump in reference to bilateral trade disputes said forging economic ties that were 'fair and reciprocal' was a major focus of his talks.
"Our teams have made tremendous progress on a comprehensive trade agreement and I am optimistic we can reach a deal that will be of great importance to both countries," he said.
While the US wants greater access to Indian markets for agricultural, dairy and medical devices, India wants a decades-old preferential trade status to be restored, which Trump terminated last year.
On Tuesday, during his 36-hour whirlwind tour, Trump received a ceremonial welcome at the presidential palace in New Delhi. He also inspected a guard of honour and was given a 21-gun salute.
US President Donald Trump said on Tuesday India will buy $3 billion worth of military equipment, including attack helicopters, as the two countries deepen defence and commercial ties in an attempt to balance the weight of China in the region.
India and the United States were also making progress on a big trade deal, Trump said. Negotiators from the two sides have wrangled for months to narrow differences on farm goods, medical devices, digital trade and new tariffs.
India's tariffs were still too high, probably the world's highest, Trump said in his only criticism of the world's biggest democracy during a visit that he said was a spectacular success.
"We are being charged large amounts of tariffs, can't do that," he said at a news briefing, again pointing to Indian duties on Harley-Davidson motorcycles.
After those meetings, Trump said his visit had been productive, with the conclusion of deals to buy US helicopters for the Indian military. India will buy 24 SeaHawk helicopters from Lockheed Martin equipped with Hellfire missiles worth $2.6 billion and plans an order for six Apache copters.
India is modernising its military to narrow a gap with China and has increasingly turned towards the United States over its traditional supplier, Russia.
Trump said he hoped to secure a big trade deal, likely by the end of the year.
"Our teams have made tremendous progress on a comprehensive trade agreement and I'm optimistic we can reach a deal that will be of great importance to both countries," said Trump in remarks made alongside Modi.
The two countries had initially planned to produce a "mini deal," but that proved elusive.
Instead, both sides are now aiming for a bigger package, including possibly a free trade agreement.
Trump said he also discussed with Modi, whom he called his "dear friend," the importance of a secure 5G telecoms network in India, ahead of a planned airwaves auction by the country.
The United States has banned Huawei Technologies, arguing the use of its equipment created the potential for espionage by China - a claim denied by Huawei and Beijing - but India, where telecoms companies have long used network gear from the Chinese firm, is yet to make a call.
India is one of a handful of countries where Trump's personal approval rating is above 50% and Trump's trip received wall-to-wall media coverage, with commentators saying he had hit all the right notes on his first official visit to the world's biggest democracy.
They were also effusive in their praise for Modi, for pulling off a spectacular reception for Trump. "Modi-Trump hug gets tighter," ran a headline in the Times of India.AGENCIES
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