The Ministry of External Affairs (MEA) said this on Thursday, a day after the two leaders held wide-ranging talks for the first time in 16 months on the margins of the G7 Summit in an attempt to rebuild the strained bilateral ties.
US Trade Representative, Jamieson Greer, will be visiting India next week to take forward the talks on the proposed trade deal.
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In the meeting, Modi and Trump reaffirmed their commitment to further strengthening the India-US Comprehensive Global Strategic Partnership and advancing cooperation across all domains for the mutual benefit of the two countries and their peoples, the MEA said.
“The leaders noted with particular satisfaction the significant progress made in negotiations towards an interim bilateral trade agreement and instructed their officials to work towards a balanced, mutually beneficial, and commercially meaningful agreement at the earliest,” it said in a statement.
The two sides have already held a series of negotiations on the proposed trade deal.In his remarks, Modi also referred to the last time he met with Trump in Washington DC in February last year and said it brought new energy to the relationship.
The prime minister also complimented Trump for his efforts to bring peace to West Asia.
“Prime Minister Modi commended President Trump for his efforts that had resulted in an understanding to end the ongoing conflict in West Asia and restore peace and stability across the broader region,” the MEA said.
It said he also underlined the importance of maintaining freedom of navigation and unimpeded commerce in the Strait of Hormuz and the need to ensure the safety of seafarers.
The Modi-Trump meeting came amid increasing outrage in India over the killing of three Indian crew members of a merchant ship in American military strikes in the Gulf of Oman.
“The two leaders reviewed the substantial progress achieved under the India-US COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology) since their meeting in Washington, DC in February 2025,” the MEA said.
“They welcomed key developments across the defence, strategic technologies, energy, and bilateral trade sectors,” it added.
The COMPACT initiative is aimed at driving transformative change across key pillars of cooperation.
The relations witnessed a major downturn after Washington imposed punitive tariffs on India last year, and President Trump made assertions regarding his role in de-escalating the India-Pakistan military clashes of May 2025 that drew sharp reaction from Indian officials.
Over the next few months, the US president repeatedly and publicly claimed that he had resolved the military conflict between the two neighbours and saved millions of lives as it was heading toward a full-scale war.
New Delhi stoutly maintained that the cessation of the hostilities was a result of talks between India and Pakistan; the US involvement had nothing to do with it.
Washington’s new immigration policy and its decision to increase the H1B visa fee also contributed to the slide in India-US ties.
However, both sides made efforts in the last few months to repair the ties and even moved forward to firm up the trade deal soon.
(With inputs from agencies)