US President Donald Trump on Wednesday (Jan 21) struck an upbeat note on the proposed India-US Bilateral Trade Agreement (BTA), saying the two countries “will have a good deal”, while praising Prime Minister Narendra Modi as a close friend and respected global leader.
Trump said this in an interview with Moneycontrol after a speech at the 56th annual meeting of the World Economic Forum in Davos.
‘We’ll have a good deal’
When asked about the progress of trade negotiations between India and the US, Trump expressed his belief that the negotiations will bring a favorable outcome for both sides.
“I have a lot of respect for your prime minister. He’s a fantastic person and a friend of mine and we’re going to have a good deal,” Trump said.
Business negotiations in the midst of economic friction
The comments come as India and the United States remain locked in tough talks on tariffs, with economic friction between the two sides intensifying in recent months.
Trade discussions were also shaped by geopolitical considerations, complicating negotiations.
An ambitious business goal
The proposed bilateral trade agreement, formally outlined in February based on guidance from the leaders of both countries, aims to more than double bilateral trade to $500 billion by 2030 from about $191 billion currently.
The BTA talks were first announced during Prime Minister Narendra Modi’s visit to Washington in February 2025.
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Trump-PModi ties tested amid tariffs and Russian oil row
Trump recently highlighted his relationship with Prime Minister Narendra Modi, saying the Indian prime minister was “not happy” with him after Washington raised tariffs on Indian goods over New Delhi’s purchase of Russian oil.
Speaking at a House Republican retreat at the Kennedy Center on Jan. 6, Trump said, “I have a very good relationship with Prime Minister Modi, but he’s not happy with me because India pays high tariffs. But now they’ve lowered them very substantially and they’re buying oil from Russia.”
“Basically, they wanted to make me happy. Modi is a very good man, he is a good man,” Trump added, adding that India had adjusted its oil purchases in response to US pressure.
Tariff pressure on Russian oil
Trump’s remarks came a day after he warned that more tariffs could be imposed if India did not address US concerns over Russian oil imports. In August 2025, Washington imposed a 25 percent tax on Indian goods, raising total tariffs to 50 percent, as part of efforts to pressure Moscow over its war in Ukraine.
Trade negotiations between India and the US continue
India’s Ministry of External Affairs recently dismissed claims that talks had stalled. MEA spokesperson Randhir Jaiswal said both sides remain committed to a bilateral trade agreement.
“India and the United States are committed to negotiating a bilateral trade agreement … both sides have held several 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 agreement between two complementary economies,” he said.
Phone calls, not silence: MEA
Jaiswal also rejected suggestions that PM Modi had failed to engage with Trump, saying the two leaders had spoken eight times last year and again eight times in 2025, covering “various aspects of our extensive partnership”.
The clarification followed comments by US Commerce Secretary Howard Lutnick, who claimed in a podcast that Modi “didn’t call” Trump when he needed to, contributing to higher tariffs and delays in the trade deal.
Lutnick said, “You have to have Modi call the president… but they were uncomfortable. So Modi didn’t call.”
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