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    Home»Economy & Business»Global Economy»India, US ‘very close’ to inking a trade deal, says Trump after meet with Modi
    Global Economy

    India, US ‘very close’ to inking a trade deal, says Trump after meet with Modi

    AdminBy AdminJune 18, 2026No Comments5 Mins Read0 Views
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    New Delhi: Prime Minister Narendra Modi raised the matter of Indian seafarers coming under attack in the Gulf with US President Donald Trump, affirming that their safety and security was of paramount importance, as the two met on the sidelines of the G7 summit in France in what was their first structured in-person meeting since February 2025.

    “We have always said that freedom of navigation should be ensured and we should also stress upon that,” Modi told Trump in his opening remarks on Wednesday.

    Also read: ‘Just look at him!’ : Trump gushes over PM Modi’s ‘calm, cool, killer’ persona ahead of bilateral meeting

    “Lakhs of Indian seafarers are on duty in different seas of the world in the sector of maritime trade. I believe that their security is equally important… I am confident that in the deal (with Iran), security of seafarers will be ensured and prioritised.”Both had exchanged pleasantries briefly at a G7 session on the day before.

    Trade deal

    Trump also said that the two countries were “very close to a trade deal.” The accord has been under negotiations for more than a year. “You and I agree that keeping the Strait of Hormuz open is vital for the global economy,” Modi said on Wednesday, stressing that India had consistently advocated unrestricted maritime movement.

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    The PM lauded Trump’s efforts to ease tensions in West Asia and advance peace initiatives in the region.

    US-Iran Deal on Friday

    “I commend you for your leadership on the progress in peace efforts in West Asia,” he said, adding that the US President had helped create “a new hope for peace and stability” in the region.

    The US and Iran are due to sign a deal in Geneva on Friday. India is hoping that the agreement will create conditions for the easing of tensions in West Asia, freeing up supply lines for energy and other vital resources.India-US ties entered a difficult phase following Operation Sindoor amid Trump’s statements that he had helped broker a peace deal with Pakistan. Then came the US administration’s decision to impose steep tariffs on India as well as other nations. Trump warming up to Pakistan, especially over negotiations with Iran, has also caused discomfort in New Delhi.

    The relationship was further complicated by US attacks on ships in the Gulf staffed by Indian sailors when the Strait of Hormuz blockade was in place. India had twice summoned US charge d’affaires Jason Meeks last week over the matter. External affairs minister S Jaishankar spoke to US counterpart Marco Rubio to register the country’s protest. The US defended its actions.

    According to the US State Department, Rubio told Jaishankar that violations of the American blockade and the illicit transport of Iranian oil through the Strait of Hormuz “will not be tolerated” and insisted that commercial vessels must comply with instructions issued by US forces operating in the region. The attacks had sparked anger in India.

    Also read: PM Modi-Trump G7 meeting: Modi flags seafarers’ safety; ties have ‘new speed, new energy’

    STRATEGIC PARTNERSHIP

    On Wednesday, Trump highlighted the growing strategic and economic partnership between the two countries, while underscoring his personal chemistry with the Indian leader.

    Speaking to reporters after the meeting with the PM, Trump said that he had a “very good” conversation with Modi, adding Washington and New Delhi were nearing a breakthrough on the trade deal.

    “We’ve been there for a little while and he’s a very tough negotiator, one of the toughest, actually,” Trump said when asked about the status of the talks. “We are very close” to a deal, he said. Trump also said he will be going to India sometime in the future but did not specify when.

    “People say he’s such a nice man,” Trump said of Modi. “I said he’s very tough. He’s a tough trader, and he loves the Indian people.”

    Trump also said the US would come to India’s assistance if it was attacked.

    When asked about defence ties between India and the US, Trump described it as “a great relationship” and added that formal treaty obligations were not necessary to underscore its support.

    “We don’t have a contract… but if they were attacked, we would be there to help them,” Trump said, gesturing toward Modi. “If they’re attacked and he’s the leader, we’re going to be there to help. Now, if there’s a new leader, I’m not sure about it.”

    Regarding a role for India in resolving West Asian tensions, Trump said New Delhi would continue to hold an important position in international affairs under Modi’s leadership. “Yes, I do… I think India plays a big role in everything. As long as he (PM Narendra Modi) is the leader, India is going to play a big role,” he said.

    PRAISE FOR MODI

    Ahead of the meeting, Trump praised Modi, describing him as “calm, cool” and a “total killer.”

    Earlier, addressing an outreach session with G7 partners–Reviving a Balanced, Shared and Sustainable Economic Growth for All–Modi proposed a global skills mobility mechanism and an economic corridor for the Global South. This would be modelled on the proposed India Middle East Economic Corridor (IMEC). He suggested combining capital from the wealthy G7 countries, talent from India and ownership from countries of the Global South to establish the International Mobilisation Partnership for Accelerating Connectivity and Trade (IMPACT).

    The Prime Minister wrote on X: “Like the vision of IMEC, can we work on connectivity projects with countries in Africa, Latin America and the Pacific Islands?”

    He also cited the economic impact of the Gulf war on nations of the South.



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