India-US trade deal 'almost complete', says US after Jaishankar-Rubio talks in Manila

The proposed interim trade agreement between India and the United States is "almost complete", the US State Department said on Wednesday after External Affairs Minister S. Jaishankar held wide-ranging talks with US Secretary of State Marco Rubio in Manila.

The meeting, held on the sidelines of the Association of Southeast Asian Nations (Asean) ministerial engagements and the Quad, also focused on finalising key defence agreements, alongside discussions on tariffs, energy, critical minerals, artificial intelligence and regional security.

In a statement issued after the meeting, the US State Department said both leaders reaffirmed the urgency of concluding the trade pact.

”Our relationship with India is vitally important,” the US Secretary of State said after the meeting.

Jaishankar and Rubio also exchanged views on the West Asia crisis and the situation in Indo-Pacific.

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”Our meeting focused on areas which are priority for the India-US Comprehensive Global Strategic Partnership, including trade and tariffs, energy, defence and security, critical minerals and artificial intelligence,” Jaishankar said on social media.

”We also exchanged quick perspectives on regional, global and multilateral issues of mutual interest,” he said.

Rubio said he and Jaishankar discussed trade, defence agreements and regional security issues.

”We discussed regional security issues, the Quad, trade, and defence agreements,” he said on X.

In a brief statement, the US State Department said Rubio and Jaishankar discussed recent developments in the West Asia and the Indo-Pacific.

”The Secretary and Minister Jaishankar discussed finalising key defence agreements in fulfillment of commitments made between President Trump and Prime Minister Modi last year,” it said without providing any details.

”The Secretary and Minister Jaishankar agreed on the importance of finalizing the interim trade deal, which is almost complete,” it added.

Meeting reflects renewed push to stabilise ties

The Jaishankar-Rubio meeting comes just over a month after Prime Minister Narendra Modi and President Trump met on the sidelines of the G7 Summit in France, where both leaders sought to inject fresh momentum into bilateral ties after a period of strain.

Relations had come under pressure following Washington's decision to impose higher tariffs on Indian goods and President Trump's repeated claims that he had played a role in defusing military tensions between India and Pakistan after last year's conflict. New Delhi consistently rejected those assertions, maintaining that the cessation of hostilities resulted solely from direct military-level communication between India and Pakistan.

Differences over US immigration measures including higher H-1B visa fees, also added to bilateral friction.

Despite those setbacks, both governments have stepped up engagement in recent months, with trade negotiations accelerating alongside efforts to deepen cooperation in defence, critical technologies and supply chains.

The relationship, however, encountered another challenge in June after three Indian sailors were killed during US military strikes on merchant vessels off the coast of Oman. Even so, Wednesday's meeting underscored both sides' intent to keep broader economic and strategic cooperation on track, with Washington indicating that the long-awaited interim trade agreement is now close to being finalised.

With inputs from agencies