PM Modi, Trump ask officials to fast-track 'commercially meaningful' interim trade pact

Prime Minister Narendra Modi and US President Donald Trump have instructed officials of the two countries to work towards concluding a "balanced, mutually beneficial and commercially meaningful" bilateral trade agreement at the earliest, according to the Ministry of External Affairs (MEA).

The direction came during a meeting between the two leaders on the sidelines of the G7 Summit in Evian, France, on Wednesday.

The leaders reviewed progress made under the India-US COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce and Technology) initiative launched during Modi's visit to Washington in February 2025 and welcomed developments in defence, strategic technologies, energy and trade.

"The leaders noted with particular satisfaction the significant progress made in negotiations towards an interim Bilateral Trade Agreement and instructed their officials to work towards a balanced, mutually beneficial, and commercially meaningful agreement at the earliest," the MEA said in a statement.

US Trade Representative Jamieson Greer is scheduled to visit India next week for talks with Commerce and Industry Minister Piyush Goyal on June 23-24 to discuss issues related to the proposed interim trade deal.

The USTR is expected to arrive in India on June 22.

Commerce Secretary Rajesh Agrawal had said earlier this week that discussions during Greer's visit are expected to focus on giving final touches to the framework deal already discussed between the two sides.

"Our expectation is that discussions will be centred around giving final touches to the framework deal... and also on the larger BTA (bilateral trade agreement), that has also been under discussions between the two sides," Agrawal had said.

The US delegation, led by chief negotiator Brendan Lynch, held discussions with Indian officials from June 2 to 4 on finalising the agreement.

On June 5, Goyal had said both countries were moving towards closing all pending issues and were likely to conclude the "very, very vibrant" first phase of the BTA by the middle of next month.

India and the US had finalised the contours of the first phase of the trade pact in a joint statement issued on February 7.

However, subsequent changes in the US tariff regime have prompted a reassessment of certain aspects of the framework.

The proposed interim agreement has gained urgency as the current US tariff regime, under which a 10% tariff has been imposed on imports from all countries for 150 days from February 24, is set to expire on July 24.

During their meeting, Modi and Trump also reaffirmed their commitment to further strengthening the India-US Comprehensive Global Strategic Partnership and expanding cooperation across sectors for the benefit of both countries.

The two leaders reviewed cooperation in defence, technology and energy sectors and exchanged views on regional and global developments.

Modi also commended Trump for efforts that led to an understanding to end the conflict in West Asia and restore peace and stability in the region.

He underlined the importance of maintaining freedom of navigation and unimpeded commerce through the Strait of Hormuz and ensuring the safety of seafarers.

The United States was India's second-largest trading partner in 2025-26. India's exports to the US stood at $87.3 billion during the fiscal, while imports were valued at $52.9 billion.