Trump welcomed Modi to the White House on Thursday, hours after he unveiled a roadmap for reciprocal tariffs on every country that puts duties on US imports, his latest trade salvo directed at American friends and foes that the White House says will strengthen economic and national security.
India may not be exempt: Although Trump had a warm relationship with Modi in his first term, he has called India a "very big abuser" on trade and his earlier levies on steel and aluminium hit India particularly hard.
"They're going to be purchasing a lot of our oil and gas," said Trump as he met Modi in the Oval Office. "We're going to make some wonderful trade deals for India and for the US"
Before his meeting with Trump, Modi's team mulled possible promises to Trump, including increased liquefied natural gas, combat vehicle and jet engine purchases, according to Indian government officials who declined to be named.
"One thing that I deeply appreciate, and I learn from President Trump, is that he keeps the national interest supreme," Modi said as he sat alongside Trump in the White House. "And like him, I also keep the national interest of India at the top of everything else."
Indian officials are also looking at possible deals on US agriculture exports to India and investment in nuclear energy, along with tariff cuts in at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals.
It's a "gift" for Trump, said one of the sources, who declined to be named as they previewed a private meeting.
US and Indian officials were also moving forward with talks on a bilateral trade deal, with a Trump administration official saying they hoped to have a deal in place this year.
"We have some very big trade deals to announce in the very near future," Trump said.
The Trump aide said that the president sees defence and energy sales to India lowering the US trade deficit.
The case of billionaire Gautam Adani may come up in the talks after his indictment by the US Justice Department in November over an alleged bribery scheme.
Adani hails from Modi's western state of Gujarat and his Adani Group runs several key infrastructure projects across the globe.
Opponents and critics often allege the meteoric rise of Adani's ports-to-energy empire was partly due to his close relations with, and favourable treatment by, administrations run by Modi's BJP and its allies. The duo have repeatedly denied impropriety.
But it will be the tariff issue that is front and centre, said Richard Rossow, head of the India program at the Center for Strategic and International Studies, a Washington think tank.
"It's going to be a boxing match," he said. "I think India is willing to take a few hits, but there's a limit."
The US has a $US45.6 billion ($A72.2 billion) trade deficit with India. Overall, the US trade-weighted average tariff rate has been about 2.2 per cent, according to World Trade Organization data, compared with India's 12 per cent.
Trump wants more help from India on unauthorised immigration. India is a major source of immigrants to the United States, including a large number in the tech industry on work visas and others in the US illegally.
