New Delhi: In a significant diplomatic push following the successful conclusion of the India-EU free trade agreement (FTA), India is now setting its sights on finalizing a long-pending bilateral trade deal with the United States. External Affairs Minister S Jaishankar is scheduled to visit Washington next week, where discussions are expected to advance these crucial trade negotiations.
Jaishankar's Washington Agenda: Trade and Critical Minerals
During his visit to the United States, Minister Jaishankar will participate in a meeting on critical minerals hosted by his counterpart Marco Rubio on February 4. This gathering will include partner countries of the US, focusing on strategic mineral resources essential for modern technologies. More importantly, Jaishankar will hold a bilateral meeting with Rubio, where trade-related issues are anticipated to take center stage.
According to sources familiar with the negotiations, Indian and US authorities have maintained continuous engagement on the trade deal, even as India was putting the final touches on its FTA with the European Union. "The two sides remain in touch on that front. I think even during the time that we were in the final stages of negotiating this deal with the EU, our trade negotiators were simultaneously communicating with their US counterparts. This work is ongoing, and we remain hopeful for a positive outcome," revealed a source speaking on condition of anonymity.
Long-Standing Negotiations and Recent Progress
India and the United States first committed to negotiating a bilateral trade agreement back in February 2025, yet despite multiple rounds of discussions, a final deal has remained elusive. Indian government officials note that both nations have come close to reaching a balanced and mutually beneficial agreement on several occasions, though talks have previously stalled without conclusion.
Earlier this month, the Indian government reiterated its strong interest in securing a trade deal that benefits both complementary economies, expressing optimism about bringing negotiations to a successful close. The timing of Jaishankar's visit is seen as particularly strategic, coming on the heels of the EU FTA achievement and demonstrating India's proactive approach to global trade partnerships.
Beyond Trade: Pax Silica Initiative Discussions
Jaishankar's Washington visit might also include discussions about the US invitation for India to join Pax Silica, a US-led initiative aimed at building secure, prosperous, and innovation-driven silicon supply chains. This comprehensive framework spans from critical minerals and energy to artificial intelligence and semiconductors, representing a significant strategic partnership opportunity.
US Ambassador to India Sergio Gor extended this invitation to India on his very first day in office earlier this month, highlighting the importance Washington places on Indian participation in this initiative. The potential collaboration underscores the multifaceted nature of India-US relations, extending beyond traditional trade into cutting-edge technological cooperation.
Strategic Trade Positioning in a Changing Global Landscape
Sources commenting on the broader trade context noted that the WTO-oriented international trade system is currently under considerable stress, prompting countries to pursue bilateral and regional agreements with important trading partners wherever possible. "The US market is equally important, if not more so, than other markets. Therefore, we must maintain our focus and determination to successfully conclude this trade deal as well," explained a source.
The same source strongly denied that India's FTA with the European Union represented a knee-jerk reaction to stalled progress in other trade negotiations. "We have been working on the EU FTA for an extended period. The decisive moment came during the visit of the EU College of Commissioners last year, when political guidance was provided to finalize the agreement," the source clarified, emphasizing the deliberate and sustained nature of India's trade diplomacy efforts.
As India continues to navigate complex international trade dynamics, the upcoming Washington visit represents a crucial opportunity to advance one of its most significant bilateral economic relationships. With momentum from the EU agreement and sustained engagement between negotiators, hopes are high that 2024 could see the long-awaited India-US trade deal finally come to fruition.
