Highlights
- Trade negotiations and the possibility of an interim India-US deal are expected to dominate talks
- US officials say a deal is possible but unlikely to be finalised during the summit
- Discussions are also expected on energy security and wider geopolitical issues
US PRESIDENT Donald Trump and Indian prime minister Narendra Modi are set to discuss a possible bilateral trade agreement when they meet on the sidelines of the G7 summit this week, as both countries look to repair ties strained by tariffs and diplomatic disagreements.
The meeting, scheduled for Wednesday (17) during the summit in Evian-les-Bains, will be the first face-to-face meeting between the two leaders since February last year, when Modi visited Washington.
A senior US administration official said trade would be a key topic during the talks but warned that a final agreement was unlikely to be reached at the G7.
“We think a potential trade deal is part of that,” the official said, adding that Modi was “quite ambitious” about India’s role and the importance of the US-India relationship.
The official revealed Trump would push for what he described as a “very good deal” but added: “I don’t think we’ll close that deal at the G7.”
The US Trade Representative Jamieson Greer is expected to travel to India after the summit for further discussions on the agreement.
Trade relations under pressure
Trade relations between New Delhi and Washington have faced pressure after the US imposed higher tariffs on Indian goods, while both sides have been negotiating an interim trade framework agreed earlier this year.
India has been seeking preferential tariff treatment as part of the discussions, with Indian commerce minister Piyush Goyal saying the first phase of the agreement could be completed by mid-July.
The Trump-Modi meeting also comes at a sensitive time for bilateral ties following the deaths of three Indian sailors after attacks on commercial ships in the Strait of Hormuz.
India has called for an end to US strikes on shipping, while Washington has said vessels must comply with orders from US forces operating in the region.
US secretary of state Marco Rubio also discussed the situation with India’s external affairs minister Subrahmanyam Jaishankar, according to the State Department.
Beyond trade, the two leaders are expected to discuss energy security and wider global issues. Modi is attending the G7 summit as part of a week-long visit to France and Slovakia, while Trump will join leaders from major economies for discussions on economic growth, supply chains, migration and artificial intelligence.
(with inputs from agencies)
