Modi, Trump push for early India-US trade deal, direct officials to fast-track talks

Prime Minister Narendra Modi and US President Donald Trump have directed officials from both countries to work towards a balanced, mutually beneficial and commercially meaningful trade agreement at the earliest.

The Ministry of External Affairs (MEA) said this on Thursday, a day after the two leaders held wide-ranging talks for the first time in 16 months on the sidelines of the G7 Summit in an effort to rebuild strained bilateral ties.

US Trade Representative Jamieson Greer will visit India next week to take forward discussions on the proposed trade agreement.

During the meeting, Modi and Trump reaffirmed their commitment to strengthening the India-US Comprehensive Global Strategic Partnership and expanding cooperation across sectors for the benefit of both countries and their people, the MEA said.

“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 ministry said in a statement.

The two sides have already held a series of negotiations on the proposed trade deal.

In his remarks, Modi referred to his previous meeting with Trump in Washington DC in February last year and said it had brought new energy to the relationship.

The prime minister also praised Trump’s efforts to promote peace in 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 said.

It added that Modi underlined the importance of maintaining freedom of navigation and unimpeded commerce in the Strait of Hormuz, as well as ensuring the safety of seafarers.

The Modi-Trump meeting came amid growing outrage in India over the killing of three Indian crew members of a merchant ship in American military strikes in the Gulf of Oman.

“The two leaders reviewed the substantial progress achieved under the India–US 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 aimed at driving transformative change across key pillars of cooperation.

India-US relations witnessed a major downturn after Washington imposed punitive tariffs on India last year and Trump made assertions regarding his role in de-escalating the India-Pakistan military clashes of May 2025, drawing sharp reactions from Indian officials.

Over the following months, the US president repeatedly and publicly claimed that he had resolved the military conflict between the two neighbours and saved millions of lives as it was heading towards a full-scale war.

New Delhi maintained that the cessation of hostilities resulted from talks between India and Pakistan and that the US had no role in the process.

Washington’s new immigration policy and its decision to increase the H1B visa fee also contributed to the decline in India-US ties.

However, both countries have made efforts in recent months to repair relations and have continued moving forward with plans to finalise the trade agreement.