India-US FTA in final stages after ‘ups and downs’, says MEA following PM Modi-Trump G7 talks

On the sidelines of the G7 Summit, India and the US moved closer to finalising a long-awaited trade deal.

Following a meeting between Prime Minister Narendra Modi and US President Donald Trump in Evian, France, India’s Ministry of External Affairs (MEA) dropped a definitive update. They said that negotiations for an interim Free Trade Agreement (FTA) have entered its "final stages," successfully weathering a period of visible friction.

'Ups and downs'

Addressing reporters in a special press briefing on Thursday, Foreign Secretary Vikram Misri acknowledged that while the negotiations had hit turbulence in recent months, the top leadership has firmly steered the deal back on track.

"There are ups and downs in relations between nations; the leaders of both nations deal with them," Misri stated. "With the United States, we have made significant progress already on the conclusion of an interim bilateral trade agreement. We are in the final stages of concluding that agreement," he added.

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The progress comes as a welcome relief to bilateral ties, which had recently faced strain over heavy tariff pressures, disagreements regarding Russian oil imports, and a fresh maritime dispute following the tragic deaths of three Indian crew members during US military strikes in the Gulf of Oman.

Also read | G7 turns into trade victory lap for India as UK, EU and US negotiations gather momentum

Trump praises Modi as a 'tough negotiator'

Following the closed-door dialogue, President Trump spoke highly of the progress and his rapport with PM Modi, whom he playfully described as a "total killer" and "one of the toughest" negotiators in the world.

"We had, in particular, some very good conversations with Prime Minister Modi," Trump told reporters. "And we're doing trade deals, we're doing a lot of things... we are very close to finalising a trade deal."

Trump also lauded PM Modi for driving massive Indian corporate investments into the United States, noting that the Indian Prime Minister is "spending a lot of money in the United States."

To ensure the directive from Modi and Trump is executed immediately, top trade officials from both sides have been instructed to fast-track a balanced, mutually beneficial pact.

The MEA confirmed that US Trade Representative (USTR) Jamieson Greer will visit India next week to iron out the remaining technicalities and move the text toward an official signing ceremony.