Prime Minister Narendra Modi and US President Donald Trump have directed their officials to fast-track negotiations for a 'commercially meaningful' bilateral trade pact, according to a statement from India's Ministry of External Affairs (MEA) on Thursday. The directive came a day after the two leaders held wide-ranging talks on the margins of the G7 Summit — their first meeting in 16 months — as both sides seek to rebuild strained ties.
US Trade Representative to Visit India
The MEA confirmed that Jamieson Greer, the US Trade Representative, will visit India next week to take forward discussions on the proposed trade deal. The visit signals a renewed push to finalize an agreement that both sides have described as 'commercially meaningful'.
Leaders Reaffirm Strategic Partnership
During the meeting, Modi and Trump reaffirmed their commitment to further strengthening the India-US Comprehensive Global Strategic Partnership and advancing cooperation across all domains for mutual benefit, the MEA said. Modi also complimented Trump for his efforts in West Asia, noting that they had resulted in an understanding to end the ongoing conflict. Modi underlined the importance of maintaining freedom of navigation and unimpeded commerce in the Strait of Hormuz and ensuring the safety of seafarers.
Bilateral Ties Under Strain
The Modi-Trump meeting took place amid increasing outrage in India over the killing of three Indian crew members of a merchant ship in US military strikes in the Gulf of Oman. Ties had earlier soured after Washington imposed punitive tariffs on India last year, and Trump made assertions regarding his role in de-escalating the India-Pakistan military clashes of May 2025 — claims that drew sharp reactions from Indian officials. Additionally, Washington's new immigration policy and an increase in the H1B visa fee contributed to the slide in relations. However, both sides have made efforts in recent months to repair ties and move forward on a trade deal.
Progress Under COMPACT Initiative
The two leaders reviewed substantial progress achieved under the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) initiative since their meeting in Washington, DC in February 2025. They welcomed key developments across several sectors:
- Defence
- Strategic technologies
- Energy
- Bilateral trade
The COMPACT initiative aims to drive transformative change across these key pillars of cooperation. The MEA noted that the leaders expressed satisfaction with the progress and reiterated their commitment to deepening the partnership.
| Area | Status per MEA |
|---|---|
| Defence | Key developments welcomed |
| Strategic technologies | Key developments welcomed |
| Energy | Key developments welcomed |
| Bilateral trade | Key developments welcomed |
The fast-tracked trade negotiations, coupled with Greer's upcoming visit, indicate a concerted effort by both governments to translate political goodwill into a tangible agreement that addresses commercial priorities on both sides.
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