Prime Minister Narendra Modi and United States (US) President Donald Trump are expected to hold a bilateral meeting on the sidelines of the ASEAN and East Asia Summits later this week, with trade set to be the central focus. The meeting could provide a much-needed political boost to ongoing negotiations aimed at finalising the Bilateral Trade Agreement (BTA) that has been years in the making.
According to sources, India and the US are reportedly close to finalising a long-awaited trade agreement that could bring significant relief to Indian exporters. The deal is expected to lower US tariffs on Indian goods from current levels of around 50 per cent to approximately 15 per cent - 16 per cent, making Indian products more competitive in the American market.
If the meeting takes place, it will mark the first in-person interaction between the two leaders since President Trump returned to office and could be a defining moment in reshaping the India-US trade relationship. Over the past few weeks, negotiators from both sides have stepped up informal discussions, focusing on key issues such as tariff rationalisation, energy cooperation, and agricultural market access. Officials familiar with the talks describe the progress as “substantial,” with both nations demonstrating a willingness to resolve long-standing disagreements.
Speaking to reporters in Washington earlier this week, Trump confirmed that he had recently spoken with Prime Minister Modi. “We’re working on a great deal with India,” he said, suggesting that broader strategic considerations—including a possible scaling back of India’s Russian oil imports—may be part of the evolving understanding.
A breakthrough in the talks could have a significant impact on Indian exports, particularly in sectors like textiles, pharmaceuticals, and gems and jewellery, all of which have been affected by recent changes in US trade policy.
