Trump and Modi want early India-US trade pact
Prime Minister Narendra Modi and US President Donald Trump instructed their officials to expedite the development of a trade agreement that is balanced, mutually beneficial, and commercially significant. The Ministry of External Affairs made this statement on Thursday, following the first extensive discussions between the two leaders in 16 months, which took place on the sidelines of the G7 Summit, aimed at revitalising the strained bilateral relationship. US Trade Representative, Jamieson Greer, is scheduled to visit India next week to advance discussions regarding the proposed trade agreement. In the meeting, Modi and Trump reiterated their dedication to enhancing the India-US Comprehensive Global Strategic Partnership and promoting collaboration across all sectors for the mutual advantage of both nations and their citizens, as stated by the MEA. “The leaders noted with particular satisfaction the significant progress made in negotiations towards an interim bilateral trade agreement and instructed their officials to work towards a balanced, mutually beneficial, and commercially meaningful agreement at the earliest,” the statement indicated.
The two parties have engaged in multiple rounds of discussions regarding the proposed trade agreement. In his remarks, Modi also referenced his previous meeting with Trump in Washington DC in February of the prior year, noting that it infused new energy into the bilateral relationship. The prime minister also complimented Trump for his efforts to bring peace to West Asia. “Prime Minister Modi commended President Trump for his efforts that had resulted in an understanding to end the ongoing conflict in West Asia and restore peace and stability across the broader region,” the MEA stated. He emphasised the significance of preserving freedom of navigation and unobstructed commerce in the Strait of Hormuz, as well as the necessity of ensuring the safety of seafarers. The meeting between Modi and Trump occurred against a backdrop of escalating anger in India following the deaths of three Indian crew members aboard a merchant vessel due to American military actions in the Gulf of Oman.
“The two leaders reviewed the substantial progress achieved under the IndiaUS COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) since their meeting in Washington, DC in February 2025,” the MEA said. “They welcomed key developments across the defence, strategic technologies, energy, and bilateral trade sectors,” it added. The COMPACT initiative is designed to propel transformative change across essential pillars of cooperation. The relations witnessed a significant decline following the imposition of punitive tariffs by Washington on India last year, alongside President Trump’s claims about his involvement in mitigating the India-Pakistan military confrontations of May 2025, which elicited a strong response from Indian officials.
In the coming months, the US president consistently and openly asserted that he had successfully mediated the military conflict between the two neighbouring countries, claiming to have preserved millions of lives as the situation was escalating toward a full-scale war. New Delhi firmly asserted that the end of hostilities was a consequence of negotiations between India and Pakistan, asserting that US involvement played no role in this outcome. Washington’s recent immigration policy, along with its choice to raise the H1B visa fee, has also played a role in the deterioration of India-US relations. However, both parties have undertaken initiatives in recent months to mend relations and have progressed towards solidifying the trade agreement in the near future.
