The strategic partnership and geopolitical compulsions of both India and the United States could significantly contribute to clinching a long-awaited trade deal, laying the foundation for future cooperation. While President Donald Trump has positioned himself ideologically closer to Xi Jinping, Vladimir Putin and Kim Jong Un-thus isolating European nations-his administration saw the need to counter China’s growing influence in the Asia-Pacific, making India a crucial ally.

US Demands and India’s Position

US Commerce Secretary, Howard Lutnick has stressed the necessity of India opening its agriculture market, asserting that this sector could not be “off the table” in trade negotiations. He advocates a broad, macro-level trade pact rather than product-specific agreements, arguing that aligning India’s tariff policies with the US would be more beneficial for both nations.

Commerce Minister Piyush Goyal recently concluded productive trade discussions in Washington with US counterparts, including Trade Representative Jamieson Greer and Secretary Lutnick. The talks hold significance as both nations move towards negotiating a bilateral trade deal. During Prime Minister Modi’s recent US visit, India and America committed to doubling bilateral trade to $500 billion by 2030, targeting the completion of the first phase of a trade pact by fall 2025.

In 2023, US-India trade in goods and services reached $190.08 billion, with India enjoying a $43.65 billion trade surplus. Trump, echoing Lutnick’s optimism, emphasised that a trade deal is within reach,........

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