According to Trump, who emphasized that he and Modi have a "special bond" with each other, the increased defense export is part of a larger plan to "deepen every aspect of our cooperation and our friendship".
We will also pave the way to finally be able to supply India with F-35, said Trump.
The American fighter jet F-35 is currently reserved for the USA's closest allies, including Israel, Japan, and NATO countries.
Trump's enthusiasm is in line with several previous American presidents, who see India as an important ally against the backdrop of an increasingly powerful China.
The President took the opportunity to accuse New Delhi of imposing "very large and unfair tariffs" on goods from the USA, which he described as a "big problem" but added that the two countries will negotiate on trade in order to balance the scales.