With US President Donald Trump saying that the trade deal negotiations between India and America will continue, a key American government official has struck an optimistic note on issues being sorted out.
The US Commerce Secretary Howard Lutnick expressed confidence on Thursday about reaching a trade agreement with India, whilst emphasising that India needs to liberalise its markets and stop Russian oil imports.
In his interview to CNBC, Lutnick said, "We are going to sort out with India, they have to open up their markets and stop buying Russian oil." The Trump administration has imposed a 25% aditional tariff on India for its crude oil trade with Russia.
Additionally, Lutnick indicated an impending significant agreement with Taiwan and expressed confidence about finalising a trade arrangement with Switzerland.
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He declined to address whether an immigration inspection at a Hyundai facility in Georgia had caused delays in completing that particular agreement.
India-US trade deal talks
US President Donald Trump and Prime Minister Narendra Modi have recently indicated an improvement in relations following America's recent implementation of 50% tariffs on India.
Trump shared on Truth Social yesterday: "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. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!"
Following this, Prime Minister Modi expressed support for the US President's statement, acknowledging that bilateral trade talks would strengthen the partnership after Trump's initiative to address "trade barriers" between the nations.
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India-US trade deal: India’s chief trade negotiator may travel to America next week; Modi-Trump call likely soonPrime Minister Modi responded on X: "India and the US are close friends and natural partners. I am confident that 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. 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."
Commerce Minister Piyush Goyal expressed optimism on Thursday about India and the US reaching an agreement on the initial phase of a trade deal by November this year.
At a press briefing in Patna, Piyush Goyal said, "In February 2025, Prime Minister Narendra Modi and President Trump together instructed us that the ministers of both sides should make a good agreement by November 2025."
"The first part of that agreement, the first tranche, should be finalised 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," Goyal said.
India’s red lines & Trump administration’s continuous attacks
According to a TOI report, Modi's recent responses on X to US President Donald Trump's remarks are notable for their absence of personal references, despite Trump's expressions of friendship.
Trump's posts on Truth Social platform on Saturday and early Wednesday highlighted his "good friend" Modi and ongoing discussions about trade barriers. However, PM Modi’s replies emphasised bilateral relations between India and the United States.
Sources indicate to TOI that trade negotiations will maintain a business-like approach, with India remaining firm on its red lines. These include maintaining import duties on agricultural and dairy products and asserting its autonomy in purchasing decisions, particularly regarding crude petroleum imports.
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India-US trade deal: Should India be enthralled by Donald Trump’s outreach to PM Modi?Meanwhile, senior officials in the Trump administration, including Peter Navarro and Scott Bessent, have in the last few weeks used abusive language against India, revealing the underlying attitude of the US government's stance.
Last week Lutnick had told Blomberg that commented that although India maintains a firm position against US pressure regarding Russian oil purchases, they would likely return to negotiate a trade agreement with Washington within several months.
In his Bloomberg interview, he said, "So I think, yes, in a month or two months, I think India is going to be at the table and they're going to say they're sorry and they're going to try to make a deal with Donald Trump."