New Delhi: India and the United States have moved a step closer to finalising an interim trade agreement, with senior officials from both countries indicating that negotiations are in their final stages. The development came after External Affairs Minister Dr. S. Jaishankar met US Secretary of State Marco Rubio on the sidelines of the ASEAN and East Asia meetings in Manila, where the two leaders reviewed the progress of the India-US Comprehensive Global Strategic Partnership.
Following the meeting, Jaishankar said the discussions focused on several priority areas, including trade and tariffs, energy cooperation, defence and security, critical minerals, and artificial intelligence. He added that both sides also exchanged views on important regional and global developments, including the ongoing conflicts in West Asia and Ukraine, highlighting the broad strategic nature of the India-US relationship.
The US State Department also described the meeting as productive. Spokesperson Tommy Pigott stated that the two leaders discussed recent developments in the Indo-Pacific and the Middle East while reaffirming their commitment to strengthening bilateral ties. According to Pigott, both sides agreed on the importance of concluding the interim trade agreement, which is now “almost complete.” He further noted that discussions also covered the finalisation of key defence agreements stemming from commitments made by US President Donald Trump and Prime Minister Narendra Modi during their meeting last year.
Adding to the optimism, US Ambassador to India Sergio Gor, who attended the meeting, hinted that Secretary Rubio is expected to visit India later this year. The proposed visit is likely to provide further momentum to bilateral negotiations and deepen cooperation across strategic and economic sectors.
The trade talks come at a time when the United States has announced significant changes to its pharmaceutical tariff policy. President Donald Trump has proposed maintaining zero tariffs on imported generic medicines for the next two years before increasing them to 100 per cent in August 2028 and 200 per cent thereafter. The announcement has raised concerns in India, which is the largest exporter of generic medicines to the US market, as the future tariff structure could affect one of India’s most important export sectors.
Despite this challenge, both nations appear committed to expanding cooperation across trade, defence, technology, and critical supply chains.
