At the World Economic Forum (WEF) in Davos on January 21, 2026, US President Donald Trump expressed optimism about a prospective India‑US trade agreement, calling it a “good deal in the making.” Speaking to Indian media, Trump also lauded Prime Minister Narendra Modi as a “fantastic man” and a “friend,” highlighting the strong personal rapport between the two leaders.
The remarks come amid ongoing discussions between Washington and New Delhi aimed at finalising a bilateral trade agreement (BTA). The agreement seeks to deepen economic ties, boost trade, and address key issues such as tariffs, market access, and industrial and energy cooperation. Both countries have ambitious goals: to expand bilateral trade from the current USD 191 billion to nearly USD 500 billion by 2030.
Recent years have seen challenges in India‑US trade relations, including high tariffs imposed on Indian imports, which had slowed progress in negotiations. However, Trump’s positive statements at Davos signal renewed momentum and a willingness on both sides to reach a balanced deal.
Indian officials, including Commerce Secretary Rajesh Agrawal, have indicated that a first tranche of the agreement is “very near,” though no official timeline has been confirmed. Several rounds of talks have taken place, with both governments working to reconcile differences in sensitive sectors such as agriculture, energy, and manufacturing.
While optimism is high, key hurdles remain. Achieving concessions that satisfy both economies will be critical for the deal to materialise. Trump’s public praise of PM Modi may also help smooth diplomatic relations and foster greater trust ahead of finalising negotiations.
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