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EYE ON INDIA OCTOBER 31, 2025 | The Indian Eye 6

India–US Trade Relations: Progress

Amid Persistent Frictions

As New Delhi and Washington edge closer to a long-awaited trade deal, deep-seated issues

— from tariffs and visas to energy policy — continue to test the resilience of the world’s most

consequential economic partnership.

OUR BUREAU Russian crude for nearly 35% of its
imports. Officials in New Delhi argue
New Delhi
that the country cannot afford to let
hen Union Commerce geopolitics dictate energy security.
Minister Piyush Goyal de- Despite these tensions, both
Wclared in Berlin this week sides recognize the enormous po-
that India and the United States were tential of closer economic ties. The
making “steady progress” on trade ne- United States views India as a criti-
gotiations, it signaled a cautious opti- cal growth partner and alternative
mism that the two democracies might manufacturing hub, while India sees
finally be closing in on a long-delayed the US as a key source of investment,
economic breakthrough. The talks, technology, and advanced supply
Goyal said, are “moving toward a fair chains.
and equitable agreement,” with both The two countries are already
sides aiming to push bilateral trade to collaborating on semiconductors,
$500 billion by 2030. clean energy, and defense co-pro-
But even as optimism grows, the duction — sectors that could define
relationship remains clouded by tar- the next phase of their trade engage-
iff disputes, visa restrictions, and di- Union Minister of Commerce and Industry Piyush Goyal engages in a roundtable discussion ment. However, experts warn that
vergent policy priorities, particularly with CEOs of German Mittelstand (SME) companies & Indian businesses in Berlin on Thursday without structural reforms and pre-
under the Trump administration’s re- (@PiyushGoyalX/ANI Photo) dictability in policy, trade will remain
newed push for economic nationalism. secondary to the political and de-
fense dimensions of the relationship.
Dr. Anupama Menon, a Del-
RENEWED MOMENTUM AFTER endra Modi and top Indian officials continue to expand, reflecting the hi-based trade analyst, notes, “India
strategic depth of the partnership.
underscored Washington’s intent
YEARS OF STALEMATE to reset the tone. “Our relationship However, the Trump adminis- and the US have achieved strategic
with India will only strengthen over tration’s new H-1B visa policy has convergence, but not yet econom-
rade ties between the two the months ahead,” Gor posted on X emerged as a major irritant. The re- ic convergence. For trade to grow
nations have often mirrored (formerly Twitter), following his first cent imposition of a $100,000 fee per meaningfully, both sides must move
Tthe broader contours of their official visit. visa application — now facing multi- past short-term politics — whether
strategic relationship — marked by At the strategic level, both ple court challenges — threatens to it’s US visa fees or India’s tariff walls.”
cooperation, but also contention. countries view deeper trade ties as upend the very foundation of India’s For now, the mood is cautiously
Since 2019, several rounds of talks critical to countering China’s eco- tech-driven exports. hopeful. With both governments sig-
have stalled over US tariffs on Indian nomic influence in the Indo-Pacific. naling intent, the upcoming months
steel, aluminum, and manufactured Yet, progress remains slow because The US Chamber of Commerce could determine whether this re-
goods, and India’s retaliatory duties of fundamental differences in their newed momentum translates into
on American agricultural and tech- trade philosophies. and several industry groups tangible progress.
nology products. India’s focus remains on domes- have called the fee “unlawful Minister Goyal’s optimism from
According to officials, recent tic manufacturing, export diversifi- Berlin reflects a broader sentiment
discussions led by India’s Commerce cation, and digital sovereignty, while and economically self-defeat- in New Delhi — that despite friction,
Secretary Rajesh Agarwal and US the US seeks greater market access ing.” Indian IT professionals, India–US trade ties are too import-
counterparts have revived hope for a and stronger intellectual property ant to derail. Yet, analysts point out
“mini trade deal”, which could pave protections. The divergence is stark who make up over 70% of H-1B that negotiations will remain com-
the way for a more comprehensive in sectors such as e-commerce, agri- recipients, are expected to plex as long as both sides continue to
pact later. The proposed agreement culture, and pharmaceuticals — ar- prioritize domestic politics over long-
reportedly includes the reduction of eas where Washington wants liber- bear the brunt of the policy. term partnership.
US tariffs on Indian goods from 50% alization and New Delhi demands If New Delhi and Washington
and increased access for American regulatory autonomy. Energy cooperation — once a can finally align their economic am-
farm and energy exports to India. Despite this, bilateral trade bright spot in bilateral relations — bitions with their geopolitical part-
The presence of newly appoint- has already surpassed $190 billion has also come under strain. The US nership, the next decade could well
ed US Ambassador Sergio Gor has in 2024–25, making the US India’s push for energy diversification aligns belong to the India–US economic
added diplomatic momentum. His largest trading partner. Technolo- with its strategic vision but poses alliance — a partnership tested by
meetings with Prime Minister Nar- gy, defense, and energy cooperation challenges for India, which relies on tariffs but driven by trust.

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