India-US trade deal: India’s chief trade negotiator may travel to America next week; Modi-Trump call likely soon

Rajesh Agarwal, the chief trade negotiator, will travel to Washington for continued discussions with American officers. (AI picture)

Amidst indicators of thaw within the India-US trade deal points, authorities officers are likely to travel to America next week. The latest social media submit exchanges between Prime Minister Narendra Modi and US President Donald Trump point out an enchancment in relations following a interval of pressure.Trade talks are set to resume next week, following a pause triggered by the US imposing further 25% tariff on India concerning Russian oil purchases. Both leaders are additionally anticipated to maintain a phone dialogue soon.According to an ET report, Rajesh Agarwal, the chief trade negotiator, will travel to Washington for continued discussions with American officers. A supply conversant in the matter quoted within the report indicated the state of affairs stays fluid, with uncertainty surrounding potential US tariff concessions within the coming months.

India-US ties: Signs of thaw

Modi and Trump have expressed mutual goodwill, with the PM responding to the US President’s pleasant overture on Wednesday. Trump had earlier referred to the Prime Minister as a “dear friend” and indicated optimistic developments within the beforehand stalled trade discussions.“India and the US are close friends,” Modi wrote on X. “I am confident our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest.”

Special relationship

“I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,” Modi stated in response to Trump’s point out of the upcoming phone dialog.On Wednesday morning, Trump posted on Truth Social stating that he was “pleased to announce India and the US are continuing negotiations to address the trade barriers between our two nations.”Also Read | India-US trade deal: Should India be enthralled by Donald Trump’s outreach to PM Modi?“I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks,” the US President stated. “I feel certain there will be no difficulty in coming to a successful conclusion for both of our great countries!”

Why has the US softened its stance on trade deal talks?

A supply advised ET that the casual assembly between Russian, Indian and Chinese leaders on the Shanghai Cooperation Organisation summit in Tianjin influenced this moderated stance from Trump. This gathering sparked discussions inside pro-Trump circles concerning India-US relations.Notably, up to now ten days, Trump has avoided claiming credit score for the India-Pakistan ceasefire association, a problem that beforehand prompted friction with New Delhi.

Friction in ties stays

Reports point out that Trump has requested European Union authorities to consider implementing up to 100% tariffs on Chinese items, with recommendations to prolong comparable measures to India.Diplomatic friction has elevated following the US implementation of a 25% responsibility on Indian imports, subsequently elevated to 50% due to India’s continued Russian oil procurement.Also Read | Donald Trump desires EU to impose up to 100% tariffs on India, China – however it’s unlikely to agree; right here’s whyVarious Trump administration officers, together with White House adviser Peter Navarro, who maintains scrutiny on India and BRICS, accuse that India’s oil purchases from Russia are supporting Moscow’s navy operations in Ukraine.India has maintained its place on strategic independence, explaining that its Russian oil purchases are pushed by home wants and world worth stability concerns.Finance Minister Nirmala Sitharaman not too long ago affirmed India’s continued Russian oil imports, emphasising that vitality choices comply with nationwide pursuits and financial reasoning fairly than exterior stress. She famous that the Reserve Bank of India is diversifying its US treasury holdings while buying gold.