The White House Press Secretary, Karoline Leavitt, has highlighted the robust personal rapport between US President Donald Trump and Indian Prime Minister Narendra Modi, describing it as a key driver behind a landmark US-India trade agreement.

Speaking to reporters in Washington DC on 4 February 2026, Leavitt revealed that direct discussions between the two leaders had yielded significant commitments from India.

Prime Minister Modi, she stated, has agreed to cease all purchases of Russian oil, redirecting procurement towards the United States and potentially Venezuela as well. This shift promises direct economic benefits for American producers and consumers, bolstering US energy exports at a time of global market volatility.

In a further boost, Modi committed $500 billion in investments into the United States, targeting critical sectors such as transportation, energy, and agricultural products.

Leavitt praised Trump's tariff policies as the cornerstone of this success, asserting that they are injecting substantial revenue into the American economy. She noted that combining tariffs with a revival of domestic manufacturing has sparked a surge in construction jobs over recent months.

New factories are springing up across the US, she explained, putting Americans back to work and fulfilling Trump's vision for industrial resurgence. The deal aligns with Trump's broader economic agenda, which prioritises attracting foreign investments to onshore production and create employment opportunities.

From the Indian side, Commerce and Industry Minister Piyush Goyal affirmed on Tuesday that Prime Minister Modi has long championed the protection of India's agriculture and dairy sectors.

Goyal emphasised that these sensitive economic areas—vital to millions of Indian farmers—have been explicitly safeguarded in the bilateral trade pact. This assurance underscores Modi's commitment to balancing global trade ambitions with domestic priorities, ensuring no compromise on agricultural livelihoods.

The agreement comes amid heightened geopolitical tensions, particularly over Russia's energy exports, which have faced Western sanctions since the Ukraine conflict escalated. India's decision to pivot away from Russian oil marks a strategic realignment, potentially easing pressures from US sanctions while deepening Indo-US economic ties.

Leavitt's comments reflect optimism about the Trump-Modi dynamic, built on previous summits and shared goals in defence, technology, and counter-terrorism. Analysts view the $500 billion pledge as transformative, capable of funding infrastructure megaprojects and revitalising Rust Belt economies in America.

India's move could reshape global oil flows, reducing Moscow's leverage in Asia while opening doors for Venezuelan supplies under US influence.

For India, the deal offers access to advanced US technologies in energy and transport, complementing its 'Make in India' initiative.

Goyal's remarks reassure domestic stakeholders that dairy and farm produce—politically sensitive—remain shielded from aggressive market liberalisation. This pact builds on prior US-India pacts, such as iCET in semiconductors and GE jet engine co-production, signalling a maturing strategic partnership.

As factories rise in the US, powered by Indian capital, the deal exemplifies how personal diplomacy can yield tangible economic dividends.

Critics may scrutinise the oil pivot's feasibility amid India's energy demands, but Leavitt framed it as a win for mutual prosperity.

The announcement positions the Trump administration as a deal-maker par excellence, with Modi as a willing partner in reshaping trade norms.