NEW DELHI: Climate change will figure high on the list on the agenda at Sunday's meeting between Prime Minister Narendra Modi and President Barack Obama, especially as both leaders are personally invested in addressing the issue. The expected outcome, unlike the high voltage political deal with China, will focus mostly on technology and finance partnership in the area of clean energy.

This will not preclude discussions on more politically contentious issues of mandatory domestic manufacturing component for clean energy capacities, particularly solar power. The other political issue will focus on how developing countries and developed countries will address climate change in the Paris agreement later this year.

The US President is expected to raise the issue of the mandatory domestic manufacturing component for clean energy investments, particularly solar panels. "The Indian government is aware of our views. However, how this issue is discussed between the two leaders remains to be seen," a senior US official said. The US has filed a complained at the WTO on the issue. The NDA government has put in place a "Make in India" policy on manufacturing. Sources indicated that two leaders are likely to work out some kind of a mutually acceptable compromise arrangement. Manish Bapna, managing director of WRI, a Washington-based think tank, said, "The trade question is an important one for the US. There could be a relaxation in the domestic manufacturing policy for the US in return for much more substantial." Pointing to the advantages of a resolution on this issue of domestic manufacturing component, Raymond Vickering, who served assistant secretary of commerce for trade development in the Clinton administration, said "There is a WTO complaint on this. A resolution will mean withdrawing the complaint and that will add to the goodwill."

The compromise, analysts hope, will be in keeping with the needs of both countries—for the US an investment opportunity, and for India a chance to augment its economy, create jobs, with an eye on working together to tackle climate change. "Obama should not come here just to make money for business back home but to also support Indian initiatives of local manufacturing and creating jobs for its people," said Harjeet Singh, international manager, resilience and climate change with Action Aid International.

Washington has been trying to damp down the impression, particularly in the media, that the meeting between Prime Minister Narendra Modi and President Barack Obama will yield a climate agreement similar to the one with China announced in November. "No two agreements are ever the same. Agreements with different countries should not be copies if each other because every country has its own circumstances," a senior US administration official said. New Delhi too has been clear about the outcome, "Negotiations for the November climate agreement went on for almost two years. There is nothing like that between India and the US. Climate change is important for both leaders. President Obama has made it one of the priority issues for his administration. For India, never has there been a government and a prime minister more seized of the issue of climate change and low carbon pathway than the Prime Minister Modi and his government," a senior Indian official said.

There has been a general expectation of a high voltage agreement, and some see this as efforts to pressure India to announce some kinds of targets to address emissions. Navroz Dubash, senior fellow at the Delhi-based Centre for Policy Research said that not only is a US-China target is not the cards but that it would be "unproductive" to pressure India for such targets. "We can do what is cynically known as the "China plus x" rule. Is that meaningful? Because India's energy needs are unpredictable. We have a massive issue about the demographic bulge. We have had growth in the service sector but it doesn't take care of the bulge. That will be addressed by focusing on manufacturing. Also 70% of building stock yet to be built. All this indicates that not only are India's energy requirements big but they are also unpredictable. So it is counterproductive to pressure India. Eventually we may see carbon intensity figures but the focus for now will be sectoral. That is more practical," said Dubash