New Delhi: Prime Minister Narendra Modi and US President Donald Trump have directed officials from both countries to expedite negotiations on a balanced and mutually beneficial trade agreement, signalling a renewed effort to strengthen ties after a period of strain in bilateral relations.
The development emerged following a wide-ranging meeting between the two leaders on the sidelines of the G7 Summit, marking their first face-to-face interaction in 16 months. According to the Ministry of External Affairs (MEA), both leaders reaffirmed their commitment to deepening the India-US Comprehensive Global Strategic Partnership and expanding cooperation across key sectors.
The MEA said Modi and Trump expressed satisfaction over the progress made in negotiations for an interim bilateral trade agreement and instructed officials to work towards finalising a commercially meaningful pact at the earliest. As part of the ongoing discussions, US Trade Representative Jamieson Greer is scheduled to visit India next week to advance negotiations.
During the meeting, the two leaders reviewed progress under the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) initiative, which focuses on enhancing cooperation in defence, strategic technologies, energy and trade. They welcomed developments across these sectors and reiterated their commitment to expanding collaboration.
Prime Minister Modi also praised President Trump’s efforts to ease tensions in West Asia and support peace initiatives in the region. The MEA said Modi highlighted the importance of maintaining freedom of navigation and uninterrupted commercial activity through the Strait of Hormuz, while stressing the need to ensure the safety of seafarers.
The issue assumes significance for India amid growing concerns over maritime security in the Gulf region following recent attacks on commercial vessels that resulted in the deaths of three Indian crew members.
The meeting comes against the backdrop of efforts by both countries to repair ties that had witnessed turbulence over the past year. Relations had come under pressure following the imposition of punitive tariffs by Washington, changes in US immigration policies, higher H-1B visa fees and repeated claims by President Trump regarding his role in de-escalating the India-Pakistan military tensions of May 2025.
While Trump had publicly asserted on several occasions that he helped prevent a wider conflict between India and Pakistan, New Delhi consistently maintained that the cessation of hostilities resulted from direct talks between the two countries and not due to any external mediation.
Despite these differences, both governments have intensified diplomatic engagement in recent months, with trade negotiations emerging as a key area of cooperation. The latest Modi-Trump meeting is being viewed as an important step towards rebuilding momentum in the bilateral relationship and finalising a long-awaited trade agreement.
