India Pursues Trade Deal With US and Ties With China
India is nearing a trade agreement with the United States while signaling openness to renewing economic relations with China under fair and stable conditions.
India and the United States are nearing a conclusion in trade negotiations as officials work to resolve remaining sticking points. Piyush Goyal, India's Commerce and Industry Minister, indicated that discussions are focused on reaching a mutually beneficial interim agreement. U.S. Trade Representative Jamieson Greer confirmed that both nations have identified the specific issues delaying the deal, though he cautioned that a final announcement is not imminent. External Affairs Minister S. Jaishankar noted that the U.S. is currently focused on reindustrialization and resetting terms of access to its domestic market.
Simultaneously, India is working to rebuild diplomatic and economic relations with China following a September 12 meeting between Prime Minister Narendra Modi and President Xi Jinping at the BRICS Summit. Goyal stated that India is open to renewing engagements with China provided the terms are fair and the geopolitical situation remains stable, though he noted the final outcome of this reconciliation remains undecided. This outreach occurs as India manages a widening trade deficit with China, which reached $99.19 billion in the 2025-26 fiscal year.
India is also expanding other international partnerships to build resilient supply chains. This includes ongoing cooperation with Singapore in the semiconductor industry and trade negotiations with Canada to address India's projected 70 percent increase in energy needs by 2035.
