Narendra Modi, Donald Trump exchange New Year greetings, discuss trade deficit, defence and Afghanistan over phone

New Delhi/Washington: Prime Minister Narendra Modi and US president Donald Trump held a telephone conversation during which they discussed the contentious issue of the USA’s trade deficit with India and the ways to enhance cooperation in areas of defence and counter-terrorism.

During the conversation on Monday evening, the two leaders exchanged New Year greetings and expressed satisfaction at the continued growth of the India-US strategic partnership in 2018.

They also appreciated developments such as the launch of the new 2+2 dialogue mechanism and the first ever trilateral summit of India, US and Japan, a statement from the prime minister’s office in New Delhi said.

The two nations had held the first edition of the 2+2 dialogue in New Delhi in September.

The two leaders also took positive note of the growing bilateral cooperation in defence, counter-terrorism and energy, besides co-ordination on regional and global issues, the statement said.

“The leaders agreed to strengthen the US-India strategic partnership in 2019 and exchanged perspectives on how to reduce the US trade deficit with India,” the White House said in a readout of the call.

According to the Office of the United States Trade Representative, the US’s goods and services trade with India totalled an estimated $126.2 billion in 2017. Exports were $49.4 billion; imports were $76.7 billion. The US goods and services trade deficit with India was $27.3 billion in 2017.

They also agreed to expand security and prosperity in the Indo-Pacific, and increase cooperation in Afghanistan, according to the White House.

India has been actively involved in reconstruction efforts in war-ravaged Afghanistan . It has committed about $3 billion in assistance to Afghanistan since US-led forces toppled the Taliban regime after the 11 September, 2001 attacks.

This was the first phone call between the two leaders after the tri-lateral summit meeting they had with the Japanese prime minister Shinzo Abe in Buenos Aires in November, on the sidelines of the G-20 Summit in Argentina.