India-US Trade Deal Update: Trump Signals Progress
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- Last Updated: 22 Jan 2026 at 12:44 PM IST
On 21 January 2026, the US President Donald Trump, at the 56th Annual Meeting of the World Economic Forum in Davos expressed confidence that India and the US would strike a “good deal.”
During the event, President Trump has delivered a strong signal of optimism regarding the proposed India–US Bilateral Trade Agreement (BTA). On a media question, he has characterised Prime Minister Narendra Modi as a close friend and a highly respected global leader.
The two nations recently had experienced economic friction. This tension was intensified by Washington’s tariff hikes following New Delhi’s purchase of Russian oil, where negotiations remain active and forward-looking.
The current discussions between the two nations are navigating a complex landscape involving market access, energy, and agricultural trade. All the bilateral trade developments between the two nations seem to be shaped by shifting geopolitical considerations.
Trump’s remark also suggests that the personal rapport between the two leaders would remain a major driver for a positive outcome.
There are high stakes for the India-US trade agreement. Formally, the agreement was outlined in February 2025 during PM Modi’s visit to Washington. The BTA also carries an ambitious target of more than doubling bilateral trade to US$ 500 billion by 2030. This would be a significant increase from the current estimate of US$ 191 billion.
This deal can be viewed as a cornerstone for both nations, which officials describe as "complementary economies." After this positive momentum, India’s Ministry of External Affairs (MEA) recently dismissed reports that talks had stalled. MEA spokesperson Randhir Jaiswal clarified that both sides have held multiple rounds of negotiations to ensure a balanced and mutually beneficial agreement. With both governments strongly committed to the 2030 roadmap, the focus is now on the next high-level sessions expected to resolve remaining deadlock over specific commodity tariffs.
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