'India ties critical': Rubio after meeting Jaishankar
What's the story
In a bid to resolve trade tensions, External Affairs Minister S Jaishankar met with United States Secretary of State Marco Rubio in New York City on Monday. The meeting was held on the sidelines of the 80th session of the United Nations General Assembly. This is their first face-to-face interaction since President Donald Trump imposed an additional 25% tariff on India for its Russian oil purchases, bringing the total tariffs to 50%.
Trade talks
US Secretary of State acknowledges India's role
During their meeting, Jaishankar and Rubio discussed several bilateral and international issues of "current concern." The US Secretary of State acknowledged the importance of India to the United States and appreciated its continued engagement on trade, defense, energy, pharmaceuticals, and critical minerals, among other areas. "Secretary Rubio and...Jaishankar agreed that the United States and India will continue working together to promote a free and open Indo-Pacific region, including through the Quad," US Department of State said in an official release.
Trade negotiations
Piyush Goyal meets US Trade Representative Jamieson Greer
Separately, Union Commerce and Industries Minister Piyush Goyal met United States Trade Representative Jamieson Greer in New York City. This was their third meeting this year, following talks in March and May. The Ministry of Commerce and Industry said the delegation aims to expedite discussions toward a mutually beneficial trade agreement.
Economic goals
Bilateral trade agreement negotiations on track for fall completion
The proposed Bilateral Trade Agreement (BTA) aims to more than double bilateral trade to $500 billion by 2030 from the current $191 billion. Five rounds of negotiations have been held so far, with plans to conclude the first tranche by fall 2025 (October-November). Last week, India's Chief Economic Adviser V Anantha Nageswaran expressed optimism about resolving tariff issues within two months, despite projecting steady domestic economic momentum.
Trade relations
India-US trade ties and ministerial meetings backdrop
The United States has been India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade at $131.84 billion, in which India's exports account for $86.5 billion. The US accounts for about 18% of India's total goods exports and 6.22% of imports, as well as 10.73% of the country's total merchandise trade. These meetings between Indian ministers and their US counterparts mark a significant outreach effort amid recent tensions over tariffs and H-1B visa fee hikes.