Overview
- Speaking to Moneycontrol at the World Economic Forum in Davos, President Donald Trump said the U.S. and India are "going to have a good deal" and called Prime Minister Narendra Modi a "fantastic" friend.
- Negotiations focus on a proposed Bilateral Trade Agreement launched in February 2025, with India’s commerce secretary saying a first tranche is "very near" and the pact targeting trade growth to $500 billion by 2030.
- U.S. tariffs of about 50% on many Indian exports remain in place, with Trump previously linking roughly half of the increase to India’s purchases of Russian oil, a linkage India disputes.
- Public messaging has been inconsistent, including a claim by Commerce Secretary Howard Lutnick that talks faltered because Modi did not call and reports of a floated tariff hike to 500%, neither reflected in announced policy.
- New U.S. Ambassador Sergio Gor affirmed active engagement and continuing calls, while market access in agriculture and energy-related frictions remain central sticking points.