The India-US trade negotiations have reached a pivotal stage, with Union Commerce and Industry Minister Piyush Goyal announcing that the first tranche of the trade deal is anticipated to be finalized by November. This development comes amid a complex global trade environment and heightened economic tensions. Both nations have expressed satisfaction with the progress made so far, indicating a positive trajectory in the discussions.
Minister Goyal, addressing reporters in Bihar, highlighted the significance of the trade deal, recalling the directives from Prime Minister Narendra Modi and US President Donald Trump earlier this year.
"In February, Prime Minister Narendra Modi and President Trump together instructed us that the ministers of both sides should make a good agreement by November," Goyal stated. He further elaborated, "The first part of that agreement, the first tranche, should be finalized by November 2025, and since March, discussions have been going on on this subject very seriously in a very good environment, progress is being made, and with the progress, both sides are satisfied."
The announcement follows a cordial exchange on social media between PM Modi and President Trump, underscoring the positive tone of the ongoing negotiations.
President Trump expressed his satisfaction with the progress, stating, "I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations." He also mentioned his anticipation of speaking with his "very good friend" Prime Minister Modi in the coming weeks.
PM Modi reciprocated the sentiment, calling the US a close friend and a natural partner, and assured that both teams were working diligently to conclude the discussions swiftly.
The trade talks are taking place against a backdrop of global uncertainties, particularly due to the US imposition of a 50 percent tariff on Indian imports, which includes an additional 25 percent due to India's purchase of Russian crude oil.
This move by Washington is seen as a measure to pressure Moscow amidst its conflict with Ukraine. The heightened economic tensions have added a layer of complexity to the trade negotiations, but both nations remain committed to reaching a successful conclusion.
The trade talks have also sparked political reactions in the US. Sydney Kamlager-Dove, the Ranking member of the House Foreign Affairs Subcommittee on South and Central Asia, criticized the Trump administration's policy towards India, calling it "reckless." She expressed concerns over the deterioration of the strategic partnership with India and urged for stronger US-India ties. Similarly, US Senator Jeanne Shaheen blamed the Trump administration for the recent escalation of tensions between the two countries, describing it as "unfortunate."
Despite the political criticisms, there is a renewed effort to strengthen the US-India relationship. Atul Keshap, President of the US-India Business Council (USIBC), emphasized the importance of personal involvement from the leaders of both nations to ensure a successful outcome. He highlighted the urgency of cooperation amid current international tensions, noting, "These are very dangerous times. The war in Europe may be expanding due to these Russian drone explorations into Poland. It could get a lot worse. And this is where the United States and India need to work together."
The ongoing trade talks have also been welcomed by various stakeholders. American singer Mary Millben expressed her support for the resumption of trade talks, stating that this is how "friends" negotiate. She emphasized the moral and economic compass set by the US-India alliance and its potential to pave a pathway to peace.
