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Trump Says India-U.S. Trade Deal ‘Very Close’ as Modi and Trump Seek to Reset Ties at G7 Summit

Evian: U.S. President Donald Trump and Prime Minister Narendra Modi sought to inject fresh momentum into India-U.S. relations during their first in-person meeting in more than a year, with both leaders’ expressing optimism about a long-awaited bilateral trade agreement and emphasizing the importance of strategic cooperation.

The meeting took place on the sidelines of the G7 summit in Evian, France, at a time when relations between Washington and New Delhi have faced strains over trade disputes, regional security concerns, and recent tensions arising from developments in West Asia.

Speaking alongside Prime Minister Modi, President Trump said the two countries were “very close” to concluding a trade agreement that has been under negotiation for an extended period. He praised Modi’s negotiating skills and described him as one of the toughest leaders he has encountered in international discussions.

“We’ve been there for a little while and he’s a very tough negotiator, one of the toughest, actually,” Trump said. Referring to his long-standing relationship with the Indian Prime Minister, Trump added that Modi had been his friend for many years.

Trump also indicated his intention to visit India in the future, although he did not provide a specific timeline for the trip.

Trade Deal Remains a Key Priority

The prospect of a bilateral trade agreement remains one of the most significant issues in India-U.S. relations. Officials from both countries have repeatedly signaled progress in negotiations, but discussions have often stalled due to disagreements over tariffs, market access, agricultural products, and protections for politically sensitive sectors.

Trump’s optimistic assessment of the talks has renewed expectations that negotiators may soon bridge the remaining gaps. The visit of U.S. Trade Representative Jamieson Greer to India later this month is expected to provide further impetus to the discussions.

Despite the positive rhetoric, analysts cautioned that substantial challenges remain. Observers noted that while both governments are eager to showcase progress, complex economic issues continue to require careful negotiation before a final agreement can be reached.

Effort to Repair Strained Relations

The meeting also represented a broader effort by Washington and New Delhi to stabilize and strengthen ties after a period marked by disagreements and diplomatic friction.

Relations between the two countries came under pressure following military tensions between India and Pakistan earlier this year. New Delhi strongly rejected President Trump’s repeated assertions that the United States had brokered a ceasefire between the two South Asian neighbors.

The relationship was further tested by developments in West Asia, particularly after a U.S. military action targeting vessels connected to Iranian trade routes reportedly affected Indian-crewed ships in the Gulf of Oman region. The incident resulted in the deaths of at least three sailors and prompted concern in India.

Addressing the issue during the joint appearance, Prime Minister Modi emphasized the importance of maritime security and the protection of Indian seafarers working across global shipping routes.

“We have always said that freedom of navigation should be ensured,” Modi said. He highlighted the contribution of thousands of Indian sailors employed in international maritime trade and stressed that their safety must remain a priority.

Modi expressed hope that the recently announced peace arrangement involving Iran would help restore stability in the region and improve security conditions for commercial shipping and maritime workers.

Strategic and Defense Cooperation

Defense and security cooperation also featured prominently in discussions. When asked about military ties between the two countries, Trump described the relationship as strong and indicated that Washington would stand by India in the event of external aggression.

The statement is likely to be viewed as a reaffirmation of the strategic partnership that has expanded significantly over the past two decades through defense agreements, intelligence sharing, military exercises, and growing cooperation in the Indo-Pacific region.

Although the United States and India are not formal treaty allies, both countries have increasingly worked together on issues related to regional security, maritime stability, and emerging technologies.

Recent diplomatic engagement reflects efforts to maintain that momentum. U.S. Ambassador Sergio Gor, who arrived in India earlier this year, has been actively involved in strengthening bilateral ties. Secretary of State Marco Rubio also visited India last month, holding discussions with Indian officials and representatives from Japan and Australia as part of the Quad framework.

Looking Ahead

While significant differences remain on trade, regional geopolitics, and certain strategic priorities, the Modi-Trump meeting signaled a shared desire to prevent those disagreements from overshadowing the broader partnership.

Both leaders projected confidence about the future of India-U.S. relations, particularly in the areas of trade, defense, and economic cooperation. As negotiations continue and high-level exchanges intensify, the coming months are expected to determine whether the renewed diplomatic push can translate into concrete outcomes.

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