PM Modi's US visit to strengthen bilateral trade, investment ties: CII

Prime Minister Narendra Modi's visit to the US is a major milestone that will strengthen bilateral trade, investment, defence, and technology partnerships, industry body CII said on Saturday.

Welcoming the recently concluded visit, the Confederation of Indian Industry (CII) said it eyes stronger trade and tech ties. 

CII noted that the wide-ranging joint statement and initiatives announced during the visit under the framework of US-India COMPACT have set a clear forward-looking agenda for India-US relations, creating new opportunities for Indian industry and economic growth. 

"A new chapter has been added to the India-US partnership, enabling much stronger collaboration in strategic sectors including defence, energy, semiconductors, space and emerging technologies like artificial intelligence (AI), quantum computing, advanced materials, and biotechnology.

"This creates an environment for the private sector on both sides to flourish in true partnership. The visit is especially significant as it will boost manufacturing in India, attract increased foreign direct investment and create jobs," said Chandrajit Banerjee, Director General, CII.

Prime Minister Narendra Modi's discussions with President Trump strongly reaffirmed a commitment to expand trade and investment between the two countries, it stated.

CII welcomed the decision to work on the first phase of a bilateral trade agreement to reduce trade barriers and streamline regulatory processes, laying a strong foundation for increasing two-way trade.

It also expects that easier market access and regulatory harmonization will emerge from the proposed bilateral trade agreement dialogues, helping Indian products and services find greater foothold in the US market and vice versa.

The target of $500 billion in trade by 2030 promises to give a huge boost to exports of labour-intensive goods from India and industrial goods from the US, offering many new opportunities for Indian industry, said CII. 

A critical area of partnership that featured in the discussion was around energy that is set to establish long term links as India strives to diversify its energy sourcing.

Given India's ambitious net zero targets, the US with its vast gas reserves can play the role of a steady supplier to meet India's energy demands, noted the industry body.

The discussion around nuclear reactors, coming close on the heels of India's recently announced nuclear energy targets of 100 GW by 2047, has laid the foundation for technology collaboration and new fossil-free fuel options, it said.

Defence cooperation emerged as a prominent pillar of the visit, reinforcing the India-U.S. strategic partnership through expanded technology transfers, joint production, and industrial collaboration.

The industry body noted that the visit's positive trajectory aligns with India's broader economic goals. Stronger bilateral ties in trade and technology will fuel economic growth, boost export competitiveness and bring in capital and expertise to critical sectors.