By The Sampadak Express
India and the United States are currently involved in “active and intense” negotiations aimed at finalizing a bilateral trade agreement (BTA), External Affairs Minister S. Jaishankar confirmed on Wednesday. Jaishankar’s comments, made during an event hosted by the Asia Society, highlighted the strong potential for a trade deal, with the Trump administration showing increased openness to strengthening its partnership with India, particularly in defense, energy, and technology.
Jaishankar emphasized that while there is a “strong business case” for a BTA, he refrained from predicting the outcome of ongoing discussions between Indian negotiators and the US team, led by Assistant Trade Representative Brendan Lynch. These negotiations are set against the backdrop of a looming threat from President Donald Trump to impose reciprocal tariffs starting April 2.
The External Affairs Minister acknowledged the complexities of balancing tariffs and US subsidies, especially in sensitive areas like agriculture. However, he expressed confidence that Indian negotiators would secure the “best possible deal” for the country. Jaishankar also pointed out that Prime Minister Narendra Modi and President Trump had a “very open discussion” on trade during their recent meeting in Washington, which led to the goal of concluding a BTA by the fall of 2025.
Jaishankar outlined the ongoing efforts, with Commerce Minister Piyush Goyal’s recent visit to the US and the continued virtual discussions aimed at advancing the trade talks. He acknowledged that while challenges remain, he was hopeful the two sides would be able to reach a mutual understanding.
Reflecting on past efforts, Jaishankar noted that previous attempts to finalize a limited trade deal during Trump’s first term were delayed due to the administration’s confidence in securing a second term and the disruption caused by the Covid-19 pandemic. “What is new now is the scale and possibly the urgency with which we are pursuing this agreement,” he said.
Jaishankar also highlighted the growing willingness of the Trump administration to engage with India on key issues such as defense, energy, and emerging technologies. He praised the US for being more receptive to building a stronger defense partnership, making it easier for India to acquire military technology. This shift in approach, according to Jaishankar, is expected to lead to a more substantial and higher-quality defense relationship.
In energy, Jaishankar pointed out that the US is a stable and reliable supplier, with both countries keen to diversify energy flows and expand cooperation in the sector. India’s growing interest in increasing LNG imports from the US was underscored, with Jaishankar noting that the US administration has shown a positive attitude toward meeting India’s energy needs.
The minister also touched upon the importance of cooperation in critical technologies, noting that the tech sector recognizes the value of mobility and talent flows, as well as partnerships. He expressed optimism about the two sides’ greater understanding of vital issues like creating secure supply chains and fostering transparent partnerships.
However, Jaishankar acknowledged that the policies of the Trump administration are contributing to a broader shift in global geopolitics. The US, traditionally a champion of global rules and norms, is now redefining its approach to international relations. Jaishankar emphasized that this shift will have profound consequences, particularly for certain parts of Asia, which may no longer benefit economically as they did in the past, likely referring to China.
In closing, Jaishankar reflected on the historical context of India’s defense procurement, noting that the US’s past refusal to sell military equipment to India, particularly after 1965, led India to turn to the Soviet Union and later Russia for its defense needs. “India was cut off from the US defense supply after 1965, and it was the US’s policies that led us to seek alternatives,” he said.
As the two countries continue their high-stakes discussions, the potential for a stronger, more comprehensive partnership between India and the US remains on the horizon.
