(Dec 11): US President Donald Trump spoke with Indian Prime Minister Narendra Modi as negotiators from the US and India work to resolve differences over an elusive trade agreement.
Modi on Thursday described the conversation as “warm and engaging” and said they “reviewed the progress in our bilateral relations and discussed regional and international developments”.
“India and the US will continue to work together for global peace, stability and prosperity,” Modi posted on X.
An Indian official added that the two leaders underlined the importance of sustaining momentum in bilateral trade talks, and also discussed cooperation in critical technologies, defence, and security.
The White House did not immediately respond to a request for comment.
A pair of American delegations travelled to New Delhi this week in an effort to repair ties between the two countries that were damaged amid Trump’s tariff push.
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State Department official Allison Hooker was scheduled to meet with Indian diplomats including Foreign Secretary Vikram Misri. Separately, Deputy US Trade Representative Rick Switzer met with Indian Commerce and Industries Minister Piyush Goyal, Commerce Secretary Rajesh Agrawal and other senior officials earlier this month, according to an Indian official who requested anonymity to discuss the internal meeting.
The engagement has raised hopes of a rapprochement, especially around trade, with the Indian official saying both sides had agreed to continue engagements after a productive exchange on trade and economic ties.
Trump’s punitive 50% tariffs have battered Indian industries and New Delhi is eager to secure relief. Negotiations over the rate have dragged on for months. Indian officials have recently expressed optimism that an initial agreement to lower import taxes could be clinched by year’s end, after the two sides failed to reach an understanding in the fall.
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India’s top economic adviser, V Anantha Nageswaran, said in a Bloomberg Television interview that he would be surprised if a trade deal wasn’t signed by March, saying most trade-related issues have been resolved.
“I was hoping something would be done by the end of November, but it has turned out to be elusive,” Nageswaran said. “That’s why it is difficult to give a timeline on this. However, I would be surprised if we don’t have it sealed by the end of the financial year.”
Trump has repeatedly signalled that he would lower the sky-high tariffs he imposed on Indian goods, which he enacted partially as a response to the country’s purchases of Russian oil. But he has continued to send mixed messages about his views on India’s trade practices.
Earlier this week, Trump suggested that he might impose new tariffs on Indian rice to address alleged dumping. India is the world’s largest rice exporter and the second-largest source of imports for the US. The Indian Rice Exporters Federation said in response that exports to the US remain demand-led, with major American producers not growing a similar crop to Indian basmati.
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