The two nations’ revolutionary economic relations are strengthening. The US Secretary of State stated at USIBC that with Biden’s USD 1.2 trillion Bipartisan Infrastructure Act and Modi’s Rs 100 trillion infrastructure plan, the US and India are making transformative investments in their respective countries. According to Blinken at USIBC, “We are elevating and expanding the strategic technology partnership between governments, businesses, and academic institutions in the United States and India because we believe how technology is designed and used should be informed by democratic values and respect for human rights.”

The basic concept of this statement—technological advancement “informed by democratic values”—is an appreciation of India’s democratic credentials, its responsible use of emerging technologies, and the US’s willingness to collaborate with India on these issues in the future.

The multi-sectoral economic ties between the US and India are advantageous to both parties and reinforce one another. India’s top trading partner is the United States. In FY 2021–22, India and the US had bilateral trade of USD 120 billion, up from USD 80.51 billion in FY 2020–21. One of the few significant trading partners with which India has a trade surplus is the US.

India and the US enjoyed a $35 billion trade surplus in FY 2020–21. Even in FY 2022–2023, the tendency is most likely to persist. Blinken acknowledged this by making reference to the February 2023 agreement, in which India announced its intention to buy 200 Boeing aircraft, claiming that this would sustain more than one million jobs across 44 states.

He added that Indian firms had made over USD 40 billion in investments across a variety of industries, including IT, healthcare, and more, supporting 4,25,000 jobs from Georgia to California. He also mentioned US and Indian solar industry cooperation. A major US firm was given (USD 500 million) in funding by the US International Development Finance Corporation to erect a solar manufacturing facility in Tamil Nadu.

He also listed other US companies that employ people in India, such as Honeywell (safer airplanes and more energy-efficient buildings). Narendra Modi’s visit to the US is anticipated to significantly boost bilateral strategic economic cooperation. Situational irritants including US taxes on Indian goods, visa-related problems, technology transfer, market access, patent security, and so on and so forth had previously existed.

However, the two nations have a strong track record of working out differences through constructive communication, and now that the geopolitical landscape has altered, the two nations are ready to advance their strategic cooperation to new heights.

As a champion of change, the market economy, and the private sector, Narendra Modi has gained respect and money on a global scale. He fervently supports economic reforms that will improve business accessibility and level the playing field for foreign businesses who invest in India. A significant and reasonable portion of the US’s USD 6 trillion total direct foreign holdings, or USD 46 billion, was invested cumulatively by the US in India in 2021.

With USD 6.04 billion, the US ranked third among foreign investors in India. Due to the abundance of incentives and business-friendly tax policies provided by the Modi government, the US investment community is projected to increase following PM Modi’s visit.

The most striking change that has occurred in India under Narendra Modi’s rule. The goal of US-US relations is to become strategic partners in advancing technology and innovation as a public good that would be guided by democratic ideals, rather than just continuing to be reliable partners in trade and investment. This visit is probably going to provide the continuing development of US-Indian relation’s new dimensions.