India underlines ‘substantive agenda’ to mend strained ties with US over tariffs, Russia oil

Responding to questions on the future of Indo-US relations on Thursday, Ministry of External Affairs’ official spokesperson Randhir Jaiswal said: “India and the United States share a comprehensive global strategic partnership anchored in shared interests, democratic values, and robust people-to-people ties.”

“This partnership has weathered several transitions and challenges,” he said, alluding to the challenges posed by US President Donald Trump’s imposition of 50% tariffs on India — 25% because of high tariffs and 25% for buying Russian energy.

“We remain focused on the substantive agenda that our two countries have committed to and we hope that the relationship will continue to move forward based on mutual respect and shared interests,” he said.

The MEA spokesperson said, “The India–U.S. defence partnership, underpinned by foundational defence agreements, is an important pillar of the bilateral partnership. This robust cooperation has strengthened across all domains… We are expecting a U.S. Defence Policy Team to be in Delhi in mid-August. The 21st edition of the joint military exercise — Yudh Abhyas — is also expected to take place later this month in Alaska. Both sides remain engaged to convene the 2+2 Intersessional meeting at the working-level towards the end of the month.”

It is not usual to give out such details of upcoming activities, especially in the defence and strategic sectors, in advance.

This announcement is significant since it gives out the message that India is not closing its doors of engagement with Washington DC.

This comes at a time when preparations are underway to schedule a visit by Prime Minister Narendra Modi to the US in the last week of September. The MEA spokesperson, when asked, said that no decision has been taken yet on the PM’s visit.

Sources said that the ostensible reason is to attend the United Nations General Assembly in New York, but a key objective will be to meet US President Donald Trump, iron out the issues on trade and arrive at a common ground on tariffs. This will also give an opportunity for the two leaders to announce a trade deal.

However, for this to fructify, a lot of moving parts and a series of things have to fall in place.

There has to be movement on two fronts — the Russia-Ukraine war and the Indo-US trade deal. Negotiations are underway on both fronts and Delhi is closely following the meeting between Trump and Russian President Vladimir Putin on August 15 to discuss a resolution to the war in Ukraine.

Modi has already spoken to Putin and Ukrainian President Volodymyr Zelenskyy in the last few days. A resolution to the conflict is in India’s interest, sources said, and it has been conveyed to both leaders.

On the trade deal front, Indian and American negotiators had been close to sealing a deal, but the US President was not happy about the deal that was agreed between the interlocutors.

So, the negotiators have to discuss the terms of the deal further, and they have to offer new terms, as red lines have been drawn. But the two sides are focused on the new goal for bilateral trade – ‘Mission 500’ – aiming to more than double total bilateral trade to $500 billion by 2030.

Now, to schedule the visit, as a first step, the Indian side has reached out to the UN headquarters for a speaking slot for the Prime Minister at the UN General Assembly, and, as of now, that has been scheduled on September 26 morning. Trump is slated to speak on September 23.

Now, if the PM’s visit takes place, it will give an opportunity to speak at the UNGA and then hold a bilateral meeting with Trump and other world leaders.