After recent months of stalled talks and rising tensions, India and the US are making efforts to renew economic ties. External Affairs Minister S Jaishankar met US Secretary of State Marco Rubio on the sidelines of the 80th session of the United Nations General Assembly in New York.
According to reports, the two leaders engaged in discussions covering a wide spectrum of bilateral and global issues of “current concern.” This marked their first in-person interaction since US President Donald Trump imposed an additional 25 per cent tariff on India over its continued purchase of Russian oil, bringing the total levies to 50 per cent.
The high-level diplomatic meeting came alongside another key engagement in New York. Union Commerce and Industries Minister Piyush Goyal met US Trade Representative Jamieson Greer. This was their third meeting this year, after earlier talks in March and May. The focus was on fast-tracking the long-pending trade agreement between India and the US.
The delegation plans to take forward the discussions with a view to achieving early conclusion of a mutually beneficial Trade Agreement,” the Ministry of Commerce and Industry was quoted as saying.
According to the same statement, positive momentum had already been built during the recent visit of US Trade Representative officials to India on September 16, during which both sides agreed to intensify negotiations on various aspects of the deal.
The meeting also came shortly after President Trump’s phone conversation with Prime Minister Narendra Modi on September 16, when Trump called to wish Modi ahead of his 75th birthday. Modi had responded by reaffirming his commitment to take the Indo-US partnership to “new heights”.
The bilateral trade agreement (BTA) in question was first proposed in February, when both countries’ leaderships directed officials to initiate formal negotiations. So far, five rounds of talks have been conducted.
The pact aims to more than double bilateral trade to Rs 45 lakh crore by 2030, up from the current Rs17.2 lakh crore.
The first phase of the agreement is expected to be finalised by the end of this year.
At an industry event in Kolkata on September 18, India’s Chief Economic Adviser V Anantha Nageswaran expressed hope that the tariff dispute with the US would be resolved within two months.
He indicated that Washington might soon lift the additional 25% duty imposed due to India’s energy purchases from Moscow.
Nageswaran also highlighted steady momentum in India’s domestic economy.
The visits by two senior ministers from Prime Minister Narendra Modi’s cabinet marked a key outreach amid rising tensions with the Trump administration.
These tensions were mainly over India’s oil imports from Russia.
Bilateral engagement had slowed but resumed after Trump expressed willingness to continue trade talks with India.
At the same time, Jaishankar’s talks with Secretary Rubio occurred just days after the US administration announced a sharp hike in H-1B visa fees. The sudden increase of Rs 90 lakh caused alarm among major tech companies including Meta and Microsoft. On September 20, the White House issued a clarification to calm concerns.
A White House spokesperson clarified that this was not an annual fee, but a one-time fee applying only to the petition. She added that current H-1B visa holders who were outside the country at the moment would not be charged Rs 90 lakh to re-enter the United States.
The broader atmosphere of the meeting was framed by growing concerns on trade, defense, energy, pharmaceuticals, and critical minerals.
Jaishankar reached New York on Sunday for the high-level session of the UN General Assembly. Reports added that he will deliver India’s national statement on September 27 from the UNGA’s iconic green podium.
Through the week, he will hold several bilateral and multilateral meetings on the sidelines of the session.
Total bilateral trade stands at around Rs 11.9 lakh crore. Indian exports make up Rs 7.8 lakh crore of this. The US accounts for 18% of India’s goods exports, 6.22% of its imports, and 10.73% of total merchandise trade.
India remains the US’s largest trading partner for the fourth year in a row. Despite the recent strain in their relationship, the numbers say a lot about their trade history.
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