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India-US Trade Talks Gain Momentum as PM Modi, President Trump Discuss Gaza Peace Plan:
In a significant diplomatic development, Indian Prime Minister Narendra Modi and US President Donald Trump held a phone conversation on Thursday, marking a renewed phase in India-US relations after months of tension. The leaders discussed the ongoing trade negotiations and also touched upon the recent peace efforts in Gaza. “Spoke to my friend, President Trump and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in close touch over the coming weeks,” Prime Minister Modi shared on social media platform X (formerly Twitter). This is the second call between the two leaders in the past month, following a strained period of silence that lasted nearly three months. Their previous contentious conversation took place in June 2025 during the G7 summit in Canada, where Trump’s remarks about his role in managing tensions between India and Pakistan had triggered a diplomatic chill. However, the ice appears to be melting. A birthday call from President Trump in September, wishing Modi on his 75th birthday, helped reset the tone of the relationship. Since then, there has been a noticeable shift in diplomatic engagement. Earlier this week, the US Senate confirmed Sergio Gor as the next Ambassador to India, a move welcomed in New Delhi. Still, challenges remain. Relations between the two nations deteriorated rapidly over the summer. In response to India’s oil trade with Russia and other economic disagreements, the US imposed steep 50% tariffs on Indian exports in August. President Trump also intensified his outreach to Pakistan, hosting both Prime Minister Shehbaz Sharif and Field Marshal Asim Munir at the White House in recent weeks—an act perceived in New Delhi as a strategic snub. Washington has taken further actions that have complicated the relationship. A new $100,000 fee for H-1B visa applicants and the cancellation of nearly 6,000 student visas affected many Indian nationals. Additionally, the US revoked India’s sanctions waiver for operating the Chabahar Port in Iran, impacting India’s connectivity and strategic interests in Central Asia. Despite these hurdles, trade talks remain a key area of focus. Both leaders have previously expressed their intent to finalize the first phase of a bilateral trade agreement by the end of autumn 2025. However, negotiations have stalled over India’s firm stance on protecting its agricultural and dairy sectors. Unlike other trade deals the US has signed recently—often featuring tariff eliminations or investment pledges—India is pushing for a fair and balanced agreement. New Delhi is focused on securing a deal that benefits both economies rather than accepting one-sided concessions. As both countries navigate a complex geopolitical landscape, Thursday’s call suggests a willingness to rebuild trust and work toward shared goals. With the Gaza peace plan welcomed by India and trade talks showing some movement, observers hope this could mark the beginning of a new chapter in India-US relations.
NEWS
Shekh Md Hamid
10/10/20251 min read
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