'US, India In A Foot Race On AI': Ex-US Envoy Says Modi-Trump Meeting Signals Bigger Tech Push

Last Updated:June 17, 2026, 22:06 IST

Former US Ambassador Atul Keshap says India and America are racing China on AI, with 11,000 of 12,000 tariff lines cleared and a $500 billion trade framework within reach.

Former US Ambassador to India Atul Keshap said Wednesday that the first face-to-face meeting between Prime Minister Narendra Modi and President Donald Trump since February 2025 puts the world’s two largest democracies in position to finalise a trade framework worth up to $500 billion, even as he warned that the two countries are in a direct AI competition with rival powers that neither can afford to lose.

Keshap, now President of the US-India Business Council (USIBC), made the remarks in an exclusive interview with CNN-News18, speaking from a moment of rare bilateral momentum: the India-UK trade deal is set to take effect on July 15, and US Trade Representative Jamieson Greer is expected in New Delhi next week to work through the final thousand of the 12,000 tariff lines on the table.

‘Powerful & Positive Symbol To The World’

Keshap was unambiguous about the France summit’s significance. “It sends a very powerful and positive signal to the world that our two countries are talking," he told CNN-News18. The meeting came after months of tough negotiations and a gap of nearly four months since the two leaders last met in person, a stretch during which the absence of any formal trade architecture between Washington and New Delhi had become an increasingly visible problem for businesses on both sides.

11,000 of the 12,000 tariff lines between the two countries are now resolved. The remaining thousand, Keshap suggested, need a particular kind of discipline. “Isolate wherever there are disagreements or problems that cannot be overcome for a future date," he said, “but at least put together the vast majority of the tariff lines in a way that can empower and unlock even greater prosperity for both countries." Greer’s arrival next week will test whether that discipline holds.

No Framework Means No Recourse

The absence of a bilateral trade framework is not an abstract problem. Right now, Indian companies operating in the United States and American companies operating in India have no formal recourse when disputes arise. Keshap described that gap as the single biggest obstacle to growing the relationship to its stated $500 billion target.

“The most important thing about the agreement is that it creates predictability," and “a framework for investors and traders in both directions," he said. Without it, the confidence necessary for trade to scale simply does not exist.

AI, Energy, Nuclear, & Defence

Keshap went beyond trade to name four areas where he said the two countries have the least margin for error: artificial intelligence, energy, nuclear cooperation, and defence. On AI, he said, “The US and India are in a foot race together on AI against other rival powers and it is important that we get it right," he said. That foot race also connects to India’s energy needs. Powering an AI-capable India at scale will require the kind of energy and nuclear cooperation that only a partnership with the United States can fully provide, he added.

“India is rising rapidly on the global stage," Keshap said. “We need to ensure that India and America win the AI race against China while also helping power India’s future." Greer lands next week. The clock on that race is already running.

About the Author

Anoshito Banerjee

Anoshito Banerjee is a digital journalist at CNN-News18, specialising in Indian foreign policy, global diplomacy, South and West Asian geopolitics, and strategic affairs. His reporting spans hard news...Read More

News india 'US, India In A Foot Race On AI': Ex-US Envoy Says Modi-Trump Meeting Signals Bigger Tech Push

Read More