US President Donald Trump on Wednesday (January 21) struck an optimistic note on the proposed India–US Bilateral Trade Agreement (BTA), saying the two countries were “going to have a good deal,” while praising Prime Minister Narendra Modi as a close friend and respected global leader.
Trump made the remarks in an interview with Moneycontrol after addressing the 56th Annual Meeting of the World Economic Forum in Davos.
‘We are going to have a good deal’
Asked about the progress of the India–US trade negotiations, Trump expressed confidence that the talks would deliver a favorable outcome for both sides.
“I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine, and we are going to have a good deal,” Trump said.
Trade talks amid economic friction
The comments come as India and the United States remain locked in tough negotiations over tariffs, with economic friction between the two sides intensifying in recent months.
Trade discussions have also been shaped by geopolitical considerations, adding complexity to the negotiations.
Ambitious trade target
The proposed Bilateral Trade Agreement, formally outlined in February following directives from leaders of both countries, aims to more than double bilateral trade to USD 500 billion by 2030 from about USD 191 billion currently.
Talks on the BTA were first announced during Prime Minister Narendra Modi’s visit to Washington in February 2025.
Trump–PMModi ties tested amid tariffs, Russia oil row
Trump recently highlighted his relationship with Prime Minister Narendra Modi, saying the Indian PM was “not happy” with him after Washington raised tariffs on Indian goods over New Delhi’s purchase of Russian oil.
Speaking at the House Republicans’ Retreat at the Kennedy Center on January 6, Trump said, “I have a very good relationship with PM Modi, but he is not happy with me as India is paying high tariffs. But now they have reduced it very substantially, buying oil from Russia.”
“They wanted to make me happy, basically. Modi is a very good man; he is a good guy,” Trump added, suggesting India adjusted its oil purchases in response to US pressure.
Tariff pressure over Russian oil
Trump’s remarks came a day after he warned that further tariffs could be imposed if India did not address US concerns over Russian oil imports. In August 2025, Washington imposed 25 per cent levy on Indian goods, taking total tariffs to 50 per cent as part of efforts to pressure Moscow over its war in Ukraine.
India-US trade talks continue
India’s Ministry of External Affairs recently pushed back against claims that talks had stalled. MEA spokesperson Randhir Jaiswal said both sides remain committed to a bilateral trade agreement.
“India and the United States were committed to negotiating a bilateral trade agreement… the two sides have held multiple rounds of negotiations to reach a balanced, mutually beneficial trade agreement,” Jaiswal said, adding that reports characterizing the talks were “not accurate”.
“We remain interested in a mutually beneficial trade deal between two complementary economies,” he said.
Phone calls, not silence: MEA
Jaiswal also rejected suggestions that PM Modi failed to engage with Trump, saying the two leaders spoke eight times last year and again eight times in 2025, covering “different aspects of our wide-ranging partnership”.
The clarification followed comments by US Commerce Secretary Howard Lutnick, who claimed on a podcast that Modi “didn’t call” Trump when needed, contributing to higher tariffs and delays in a trade deal.
Lutnick said, “You have to have Modi call the president… but they were uncomfortable doing it. So, Modi didn’t call.”
