Prime Minister Narendra Modi and US President Donald Trump have directed their officials to work towards a balanced, mutually beneficial, and commercially meaningful trade agreement at the earliest. This directive came during their meeting on the sidelines of the G7 Summit in Evian-les-Bains, France, marking their first face-to-face talks in 16 months.
The Ministry of External Affairs (MEA) confirmed on Thursday that the two leaders aimed to rebuild strained bilateral ties. US Trade Representative Jamieson Greer is scheduled to visit India next week to advance negotiations on the proposed trade deal.
Leaders Reaffirm Commitment to Strategic Partnership
During the meeting, Modi and Trump reaffirmed their commitment to strengthening the India-US Comprehensive Global Strategic Partnership. They emphasized advancing cooperation across all domains for the mutual benefit of both nations and their people. The MEA stated that the leaders noted significant progress in negotiations towards an interim bilateral trade agreement and instructed officials to finalize a balanced and commercially meaningful deal swiftly.
Several rounds of negotiations on the trade pact have already taken place. Modi recalled his previous meeting with Trump in Washington DC in February 2025, stating that it infused new energy into bilateral relations. He also praised Trump's efforts to bring peace to West Asia.
“Prime Minister Modi commended President Trump for his efforts that had resulted in an understanding to end the ongoing conflict in West Asia and restore peace and stability across the broader region,” the MEA said. Modi stressed the importance of maintaining freedom of navigation and unimpeded commerce in the Strait of Hormuz, as well as ensuring the safety of seafarers.
Context of Strained Ties
The Modi-Trump meeting occurred amid growing outrage in India over the killing of three Indian crew members of a merchant ship during US military strikes in the Gulf of Oman. The leaders reviewed progress under the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) initiative since their February 2025 meeting in Washington. They welcomed developments in defense, strategic technologies, energy, and bilateral trade.
Bilateral relations had deteriorated after Washington imposed punitive tariffs on India last year. Trump also made assertions about his role in de-escalating India-Pakistan military clashes in May 2025, which drew sharp reactions from Indian officials. Over subsequent months, Trump repeatedly claimed he had resolved the conflict and saved millions of lives, while New Delhi maintained that the cessation of hostilities resulted from bilateral talks between India and Pakistan, with no US involvement.
Additionally, Washington's new immigration policy and increased H1B visa fees contributed to the strain. However, both sides have made efforts to repair ties in recent months and are moving forward to finalize a trade deal soon.
