Prime Minister Narendra Modi held a productive phone call with US President Donald Trump, focusing on enhancing bilateral trade and cooperation in critical sectors like technology, energy, and defense. This comes amid protracted negotiations for a delayed trade agreement, following US imposition of 50% tariffs on Indian imports in August over India's Russian oil purchases. Despite tensions, both leaders committed to sustaining momentum for global peace and economic growth. India maintains strong ties with Russia, hosting Putin recently.
Latest update: On December 11, 2025, Commerce Minister Piyush Goyal stated that India-US trade negotiations are progressing well, with substantial discussions underway for a mutually beneficial bilateral agreement, aiming for an initial phase by fall 2025. Source: The Tribune
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AFP reports: Prime Minister Narendra Modi discussed trade and bilateral ties with US President Donald Trump on Thursday, as officials from India and the United States continue protracted negotiations for a long-delayed trade agreement.
The phone call between leaders comes months after ties hit fresh lows as Trump upended geopolitics and slapped 50 percent tariffs on most Indian imports in August over its purchases of Russian oil.
Modi said that he “had a very warm and engaging conversation with President Trump” as deputy US Trade Representative Rick Switzer concluded his two-day India visit.
“We reviewed the progress in our bilateral relations and discussed regional and international developments,” the Indian premier said in a post on X, adding that the two countries would “continue to work together for global peace and stability”.
The leaders also discussed “expanding cooperation in critical technologies, energy, defence and security, and other priority areas,” the Indian government said in a statement.
They “underlined the importance of sustaining momentum in shared efforts to enhance bilateral trade,” it added.
The Trump administration has argued that India’s purchase of discounted Russian crude effectively bankrolls Moscow’s war in Ukraine.
Washington has also pressed New Delhi to ease access to key Indian sectors, particularly politically-sensitive agriculture, which has also led to a stalemate in discussions.
India was among the first countries to begin trade talks after President Donald Trump unveiled sweeping tariffs on most US trade partners in April.
But it is one of the few major economies still without an agreement, raising risks for jobs, economic growth and markets.
India is the world’s fastest-growing major economy and recorded a $45.8 billion goods trade deficit with the United States in 2024.
Large export categories such as smartphones and generic drugs are exempt from Trump’s tariffs, but many labour-intensive industries are not.
India continues to maintain close ties with Moscow, its key military hardware supplier for decades.
It rolled out the red carpet for Russian President Vladimir Putin last week and vowed to expand the bilateral ties across several key sectors.