NEW DELHI (Reuters) - Indian Prime Minister Narendra Modi, on a two-day U.S. visit starting Wednesday, is expected to propose tariff cuts and increased energy and defence imports during a meeting with U.S. President Donald Trump.

Modi is keen to avert a potential trade war and boost trade ties after Trump threatened reciprocal tariffs on many countries, including a 25% tariff on all steel and aluminium imports.

Here are key issues likely to be discussed during the bilateral meeting:

ENERGY IMPORTS

India plans to propose increasing energy products imports from the United States, estimated at over $11 billion in first eleven months of 2024, to alleviate trade imbalances.

As the world's fourth largest importer of liquefied natural gas (LNG), India may push its oil companies to purchase more U.S. LNG, buoyed by the Trump administration's lifting of export permit bans for new projects.

State-run GAIL India Ltd is aiming to acquire a stake in a U.S. LNG plant or to secure long-term supply deals, company chairman Sandeep Gupta has said.

DEFENCE IMPORTS

India will likely negotiate the purchase and co-production of combat vehicles and finalise a fighter jet engine deal during Modi's visit.

Protracted talks have been ongoing between India and the U.S. over the co-production of General Dynamics' Stryker combat vehicles.

Officials from India's state-owned Hindustan Aeronautics Ltd (HAL) are set to meet with U.S. officials and General Electric's ( GE ), aerospace unit in the coming weeks to finalise the deal.

ILLEGAL MIGRATION

The countries are expected to discuss the deportation of illegal Indian immigrants by the U.S. administration, and India's concerns about their treatment.

Mukesh Agi, president of the US-India Strategic Partnership Forum (USISPF), said the industry is addressing the misuse of H-1B visas while seeking an increase in legal migration to meet the United States' professional shortage.

MARKET ACCESS AND LEVEL PLAYING FIELD

U.S. officials and industry representatives are likely to raise the issue of "market access and a level-playing field" for U.S. businesses, citing higher import tariffs on certain goods.

Elon Musk is expected to meet with Modi to discuss bringing Tesla's cars to India and expediting the allocation of satellite spectrum for his Starlink project.

INVESTMENT BY INDIAN COMPANIES

India will likely propose facilitating investments by Indian companies in the U.S., highlighting their billion-dollar investments in steel, garment, and contact manufacturing sectors.

STRENGTHENING STRATEGIC TIES

Indian officials and industry groups are optimistic Modi's visit will enhance strategic and economic ties with the United States.

New Delhi aims to attract increased investments from U.S. companies in manufacturing and services, including the insurance sector, amid escalating threats from China.