India, US engaged in ‘very lively, intense’ commerce negotiations, says Jaishankar

India and the US are engaged in “lively and intense” negotiations for a commerce deal and the Trump administration has proven it’s extra open to forging a stronger partnership with New Delhi in essential areas corresponding to defence, power and tech, exterior affairs minister S Jaishankar stated on Wednesday.

Jaishankar, talking at an occasion organised by Asia Society, stated there’s a “sturdy enterprise case” for a bilateral commerce settlement (BTA) with the US however declined to prejudge the result of ongoing talks between Indian negotiators and a visiting US crew led by assistant commerce consultant Brendan Lynch. His feedback got here towards the backdrop of US President Donald Trump’s menace of imposing reciprocal tariffs from April 2.

Acknowledging the necessity to stability tariffs and US subsidies in essential areas corresponding to agriculture in any commerce deal, Jaishankar stated he was assured Indian negotiators have been conscious of the nation’s pursuits and would finalise the “very best deal for us”.

Jaishankar, who was taking part in a dialog with Asia Society president Kyung-wha Kang, a former overseas minister of South Korea, stated Prime Minister Narendra Modi and Trump had a “very open dialogue” on commerce at their assembly in Washington final month and this led to their resolution to conclude a BTA by the autumn of 2025.

“That’s what is at present below dialogue…My colleague, the commerce minister [Piyush Goyal], was within the US final month, and since then, we’ve been working the commerce account by means of digital means. There’s a really lively and intense commerce dialogue happening at this level of time,” he stated.

“I wouldn’t prejudge the result. I’d wait and see actually what occurs when it comes to our capability to achieve an understanding with the US,” he stated whereas responding to a query about balancing tariffs and US subsidies.

“However I don’t imagine that an issue ought to in itself be an insuperable impediment, as a result of there’s a sturdy enterprise case for a BTA with the US,” he stated.

Jaishankar identified that Indian and American commerce negotiators spent quite a lot of time attempting to finalise a restricted commerce deal throughout Trump’s first presidential time period. That deal was not pushed with urgency due to the Trump administration’s confidence about returning for a second consecutive time period, and this was adopted by the disruption attributable to the Covid-19 pandemic. “So, a commerce settlement with the US is definitely conceptually not new. What’s new is presumably the size and perhaps the urgency with which we’re doing it now,” he stated.

Jaishankar additionally highlighted what he described because the larger openness of the Trump administration to interact with India in essential areas corresponding to defence, power and rising applied sciences. Modi’s discussions with Trump in February led to an evaluation by the Indian aspect about “many adjustments which suited us or which in some methods kind the convergence on which we might construct upon”, he stated.

Within the discipline of defence, Trump was “way more open and way more lively when it comes to constructing a security-defence partnership and way more forthcoming about American know-how potentialities”. Even in his first time period, Trump personally stepped in and ensured that India might purchase army platforms it was serious about however “have been meandering their manner someplace by means of American paperwork”, he stated.

“This time round, we immediately heard a recognition that there must be a greater manner of participating companions. If there are nations who respect and recognise the worth of American know-how and wish to purchase it, there ought to be simpler pathways than the present path. We definitely anticipate a extra substantial, larger high quality defence relationship consequently,” Jaishankar stated.

Within the discipline of power, the place India needs a steady, affordable and predictable atmosphere for its long-term progress, Trump “clearly had an curiosity in guaranteeing that power availability was extra, power flows have been extra various, that nations like India might have extra alternative than we at present do”, he stated.

India started importing LNG from the US a decade in the past, although this enterprise stayed at a sure stage for varied causes. “We have now curiosity in rising it as a result of the US is a really steady provider. We discovered, from the power perspective, a really optimistic administration,” Jaishankar stated.

The 2 sides additionally had a very good dialogue on vital applied sciences. “I believe massive tech recognises the significance of mobility and expertise flows and the significance of partnerships, as a result of clearly every little thing within the tech world can’t occur in America,” he stated.

Either side have larger “understanding and sensitivity” on essential points in tech corresponding to creating dependable provide chains, and trusted and clear companions, he added.

Jaishankar, nonetheless, acknowledged that the insurance policies of the Trump administration are resulting in a churn and paradigm shift in geopolitics because the US, which underwrote international guidelines and practices for the previous 80 years, has began altering its phrases of coping with the world.

“I believe the world won’t ever be the identical once more. There’s something very deep, very profound, very consequential which is going on proper now,” he stated. The world order is taking a look at tariff wars and far stronger export controls and the shift means some components of Asia could also be unable to revenue economically as they’ve achieved up to now, he stated in an obvious reference to China.

Jaishankar additionally stated that the previous insurance policies of the US have been chargeable for India not shopping for extra American defence {hardware} and as an alternative turning to the Soviet Union and Russia. “India was importing defence tools from the US until 1965. It was the US which lower off India in 1965. It was the US thereafter which didn’t resume sale of defence tools to India from 1965 until 2006, barring one exception,” he stated.

“If India turned to the Soviet Union and thereafter to Russia, to a big extent, it was a state of affairs additionally created by the US, which consciously had a coverage of not supplying army tools to India.”