NEW DELHI: With US President Donald Trump hinting at a softening of his stance toward India, hopes for a "good" trade deal have been revived. Government sources have indicated that trade talks are set to resume soon, with some ministries from the worst-affected sectors claiming they have been assured by the Ministry of Commerce that a favorable deal is on the horizon.
Earlier today, President Trump announced via a TruthSocial post that India and the United States of America are continuing negotiations to address trade barriers between the 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," he said.
In response, Prime Minister Narendra Modi tweeted, "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."
India and the US have been engaged in a Bilateral Trade Agreement (BTA), with the first tranche expected to be completed by September-October. However, growing tensions over India's Russian oil purchases had led the US to call off a visit by US trade negotiators to New Delhi for the sixth round of talks, disrupting the process. At the time, the Commerce Ministry stated the delegation’s trip—scheduled from August 25 to 29—would be rescheduled without providing a new timeline.
The US had now levied a 50 percent tariff on Indian goods, and that has forced India to look elsewhere exploring new trade ties and exports markets.
Now, with both the US President and the Indian Prime Minister sending conciliatory signals, the trade talks are set to get a boost. A government source told TNIE that while no dates have been finalized, the next round of negotiations is expected to begin soon.
The India-US trade talks had hit a roadblock over concessions for US farm and dairy exports, a traditional "no-go area" for India in all previous FTA talks. However, with the US once again extending a hand of friendship, there is speculation that India could also soften its stance on this issue.