NEW DELHI– Economists welcomed signs of progress in India–U.S. trade negotiations on Wednesday, saying the constructive exchange of words between leaders has raised optimism for tariff relief and a stronger bilateral relationship.
Economist Rajiv Sahu credited Prime Minister Narendra Modi’s firm stance in talks with Washington, noting that U.S. President Donald Trump’s recent conciliatory remarks suggested a willingness to reconcile. “India has stood firm instead of yielding to U.S. pressure, and it now appears that both countries can move ahead towards a trade agreement on reasonable tariff terms. At no cost can India be underestimated,” Sahu said.
Talks between the two nations began in February 2025, when Modi and Trump committed to expanding bilateral trade from $200 billion to $500 billion by 2030. Economist Prabir Kumar Sarkar said Trump’s description of Modi as a “good friend” signaled hope for a constructive outcome, despite the 50 percent tariff imposed on India in August.
Sarkar expressed confidence that India would be able to resolve its export-related concerns through the negotiations, while economist Gurcharan Das stressed the importance of reducing tariffs. “Doing so would create long-term benefits for the Indian economy through stronger trade ties with the U.S.,” Das said.
Beyond India, the talks are being watched closely by other nations. Shmuel Abramzon, Chief Economist at Israel’s Finance Ministry, praised the progress, saying Israel was pleased to see two of its close allies engaging positively. He added that India’s skilled workforce and reform-driven government give it immense potential to emerge as a global economic powerhouse.
Economists agreed the encouraging signals from the dialogue not only strengthen the India–U.S. trade outlook but also reinforce India’s image as a serious player in global commerce. (Source: IANS)
