External Affairs Minister Dr. S. Jaishankar announced on April 7 that he had a discussion with Secretary of State Marco Rubio, during which both parties recognized the necessity of finalizing a bilateral trade agreement in the near future. Jaishankar conveyed this information in a post on X, providing no additional specifics but emphasizing that their dialogue underscored a mutual acknowledgment of the deal’s urgency. Indian officials have indicated that, despite apprehensions regarding reciprocal tariffs imposed by the U.S.—which currently reach as high as 26% on certain products—New Delhi does not intend to retaliate in the immediate term. Instead, the government is concentrating on progressing trade negotiations and has pinpointed a potential provision in a tariff order from the Trump administration that could offer relief to nations making “significant steps” to rectify trade imbalances. While sectors such as electronics, gems and jewelry, and fisheries remain susceptible to disruptions caused by tariffs, India is optimistic that the evolving global trade environment presents an opportunity to enhance access to U.S. markets, especially as American businesses seek to diversify their supply chains away from China.
