Athira Sethu
Kochi, 8 September 2025
The relations between the United States and India had some recent setbacks, but these days there is renewed hope that these relations will pick up. It is hoped that a trade pact between the two nations may soon be signed.
US President Donald Trump had recently described Indian Prime Minister Narendra Modi as a “great Prime Minister” and described issues between the two nations as only a “momentary hiccup.” He asserted that there is “nothing to worry about” and that the India-US friendship is sound.
This tone shift followed after President Trump previously condemned India for procuring oil from Russia and asserted that the US had “lost” India to China. However, he later stated that he would remain friends with Modi and is willing to mend the relationship.
One of the primary concerns is the 50% tariff the US has imposed on most Indian exports. Those high taxes were tacked on after the two nations were unable to reach a trade agreement. Trump feels India will return to the bargaining table shortly, but Indian leaders are confident that things can be worked out between the two without coercion.
Prime Minister Modi was swift to react to Trump’s complimentary words, expressing that he welcomes the President’s words and appreciates the strong relationship between India and the US. Foreign Minister S. Jaishankar also stated Modi considers the US partnership extremely significant.
Commerce Minister Piyush Goyal said he hopes a new trade deal will be reached by November 2025, despite recent tensions. He explained that global political issues have affected talks but believes progress is being made.
Goyal added that India’s economy is also in good shape with good growth, low inflation, and increasing foreign investment. The government is making every effort to facilitate business and investment for companies by reducing taxes and making rules simpler.
Though there are issues, particularly with regard to trade and energy, both India and the US appear set to press on. With negotiations taking place behind the scenes and officials from both sides offering support, a new India-US trade agreement might be near.
