On Thursday (February 13th) local time, after meeting with Indian Prime Minister Modi, US President Trump announced that the US will increase its arms sales to India starting from 2025, including providing F-35 fighter jets, and set a goal of doubling bilateral trade to $500 billion by 2030. This series of measures not only deepens the strategic cooperation between the United States and India, but may also have a profound impact on the financial market.

Military sales cooperation: F-35 fighter jet becomes the focus

Trump stated that the United States will increase its military sales to India by billions of dollars and plans to ultimately provide the F-35 stealth fighter jet.

Although no specific timeline has been provided, this plan may bring long-term benefits to US military companies such as Lockheed Martin, boosting the performance of related stocks.

Trade target: 500 billion US dollars by 2030

Modi announced that the United States and India have set a goal of doubling bilateral trade by 2030 and are committed to reaching a mutually beneficial trade agreement.

India has announced a reduction in tariffs on US goods, and Trump has stated that he will narrow the trade deficit through oil and gas exports.

Collaboration between Technology and Supply Chain

The United States and India will cooperate in the fields of artificial intelligence and semiconductors, and establish a strategic mineral supply chain.

This cooperation may drive up the stock prices of related technology sectors and mining companies, especially those involved in key minerals.

The impact on financial markets

Military Industry Sector: Potential orders for F-35 fighter jets may boost the stock prices of military industry companies such as Lockheed Martin, while driving up the entire defense sector.

Energy sector: India's agreement to increase imports of US oil and gas may benefit US energy companies, especially shale oil and gas producers.

The cooperation between artificial intelligence, semiconductors, and strategic minerals in the technology and mining sector may drive up the stock prices of related technology and mining companies.

Exchange rate market: The narrowing of the US India trade deficit may provide support for the US dollar exchange rate, while the Indian rupee may strengthen due to foreign investment inflows.

Geopolitical background

India has long relied on Russian military equipment, but the Ukraine conflict has affected Russia's export capabilities, prompting India to turn to the West.

Russia has proposed to manufacture Su-57 fighter jets in India in an attempt to maintain relations with India, but the US arms sales plan may further weaken Russia's influence in the Indian market.

summary

The meeting between Trump and Modi marks a further deepening of US India strategic cooperation, especially in the areas of arms sales and trade. The potential orders for the F-35 fighter jet and the $500 billion trade target not only bring benefits to US military and energy companies, but may also drive the rise of the technology and mining sectors. At the same time, this cooperation provides support for the exchange rates of the US dollar and the Indian rupee. In the future, the continued warming of US India relations will have a profound impact on global financial markets.