In recent news, there have been rising tensions between the US and India. However, India’s commerce minister, Piyush Goyal, seemed upbeat on Tuesday, talking about intentions to reduce tariffs and decrease purchases of Russian oil, following President Trump’s assertions that a trade deal could be finalized by November.
Goyal mentioned at the Investor Conference in Mumbai that India’s trade negotiations are progressing well, with “very positive and important progress” regarding the free trade agreement with the European Union. He also noted that talks with countries like Oman, Chile, and Peru are at “higher stages.”
“I hope things get back on track soon. As the two leaders discussed in February, I think we can finalize the bilateral trade agreement by this fall, maybe November,” he expressed, referring to a meeting between Prime Minister Narendra Modi and Trump at the White House on February 13th.
At another industry event, Goyal indicated that India is in active discussions with the US about a bilateral trade agreement (BTA).
“We’re aware that these are uncertain times filled with global turbulence,” he added.
Goyal also pointed to a reset in relations with neighboring countries, including China, which has faced scrutiny since the Galwan conflict. He attended the Shanghai Cooperation Organization (SCO) meeting in China, where he seemed to emphasize India’s growing connections.
“Sure, we had issues in Galwan, and that affected our relationship. But I think it’s natural for things to normalize as border matters get resolved,” he noted.
The Galwan Valley is the site of a notorious clash in 2020, where 20 Indian soldiers lost their lives during a hand-to-hand combat scenario with Chinese forces.
Some analysts perceive Modi’s participation in the SCO conference as a signal of India shifting toward China and Russia while distancing from its long-standing ties with the West, particularly amid trade disputes with Trump.
In light of this, Chinese leader Xi Jinping and Russian President Vladimir Putin appear to be fostering the notion that India is aligning itself with a “global South” alliance, reflected in current power dynamics.
While Modi reminded India of its diverse partnerships and market options, he carefully avoided any indication that India would definitively turn its back on the US.
Critics, like Trump’s trade adviser Peter Navarro, voiced concerns about Modi’s trip to China just hours before Goyal’s address at the conference.
“It’s unfortunate to see Modi aligning with leaders like Putin and Xi, who represent authoritarian regimes. That’s baffling,” Navarro remarked.
He added, “Given India’s Cold War history and ongoing tensions with China, I can’t quite grasp the motivation behind these moves.”
“I sincerely hope Indian leaders understand the importance of standing with us and Europe and distancing themselves from Russia on this matter,” he said.
Scott Bescent from the Treasury Department also offered a mild critique of Modi on Tuesday, sharing Goyal’s optimistic view about the future of India-US trade negotiations while dismissing the recent SCO meeting as mostly performative.
“Ultimately, India is the most populous democracy globally, and I believe its values align more closely with ours than with Russia’s,” Bescent stated.
“In the end, I think these two great nations will come to an agreement. Although, the ongoing procurement of Russian oil by India, and subsequent resale, has raised concerns about funding Russian efforts in Ukraine,” he added.
On Tuesday, President Trump kept alive the possibility of a trade deal, criticizing India for having the “highest tariffs” in the world but acknowledging that India has proposed an “adverse deal” to rectify the trade imbalance. Trump mentioned several instances this week where India suggested eliminating tariffs on US exports to finalize the agreement.
