India-US trade talks gather fresh momentum after PM Modi-Trump meeting at G7 Summit

US President Donald Trump on Wednesday indicated renewed traction in India-US trade negotiations, saying the two sides were “working on trade deals” after his meeting with Prime Minister Narendra Modi on the sidelines of the G7 Summit in Évian, France.

The interaction, their first in-person engagement in over 16 months, comes as New Delhi and Washington attempt to push forward discussions on an interim trade framework while expanding cooperation across manufacturing, technology, energy transition and critical supply chains.

“It’s a pleasure to meet you here in Evian. We had an extremely productive meeting in Washington last year, and since then, we have given new speed and new energy to our relations,” Modi said during the meeting. “Our teams are working closely and making every effort to achieve the goals we have set.”

Trade negotiations drive the agenda

Commercial negotiations formed the core of the discussions, with both sides reviewing progress on an interim arrangement aimed at easing tariff frictions and improving market access. The talks come at a time when businesses in both countries are watching for clarity on the next phase of economic engagement.

Trump described Modi as a “very tough negotiator” and a “tough trader,” adding that the conversation had been “very good.” He also pointed to India’s economic footprint in the US, saying it was “spending a lot of money in the United States… we appreciate that—jobs.”

Over the past few years, the two countries have expanded cooperation across advanced manufacturing, semiconductors, digital infrastructure, clean energy and resilient global supply chains, with the proposed trade pact seen as a key step in deepening economic integration.

Maritime security and trade routes also discussed

Alongside trade, the leaders also discussed maritime security and the stability of key sea lanes, including the Strait of Hormuz, a critical artery for global energy and commerce.

“We have always said that freedom of navigation should be ensured,” Modi said, underlining the need to safeguard seafarers operating across international waters. He noted that a large number of Indian seafarers contribute to global trade and that their safety remains a priority for New Delhi.

The meeting reflects the widening scope of India-US engagement, where economic priorities and strategic concerns increasingly intersect as both sides look to strengthen long-term trade and supply chain resilience.