Trump Confident on India-US Trade Deal, Praises Modi

US President Donald Trump expressed optimism about the proposed India-US Bilateral Trade Agreement (BTA), asserting that the two nations would “have a good deal.” Speaking at the World Economic Forum in Davos on January 21, Trump praised Prime Minister Narendra Modi as a close friend and respected global leader, signaling a positive outlook for ongoing trade negotiations between the world’s largest and most populous democracies.

Economic Friction and Complex Negotiations

The remarks come amid intense negotiations between India and the United States over tariffs and broader trade rules, with economic friction between the two sides intensifying in recent months. Trade discussions have also been shaped by geopolitical considerations, adding significant complexity to the talks. Despite these challenges, Trump’s statement reinforces the political will to reach a comprehensive agreement that benefits both nations.

Ambitious $500 Billion Trade Target

The proposed BTA aims to more than double bilateral trade to $500 billion by 2030 from approximately $191 billion currently—an ambitious target that reflects the strategic importance both nations place on their economic relationship. Formally outlined in February following directives from both leaders, talks on the agreement were first announced during PM Modi’s visit to Washington in February 2025.

Trump’s confidence in securing a favorable deal suggests momentum in negotiations despite existing economic tensions. The successful conclusion of the BTA would significantly strengthen India-US ties and contribute to both nations’ economic growth, positioning them as key partners in shaping global trade policies and economic cooperation in the coming years.