New US Ambassador-Designate Meets Indian Leadership to Strengthen Ties
The US Ambassador-designate to India, Sergio Gor, arrived in New Delhi for a series of high-level meetings with Prime Minister Narendra Modi, External Affairs Minister S. Jaishankar, and National Security Advisor Ajit Doval. The discussions focused on bolstering the strategic partnership in key areas including defence, trade, technology, and critical minerals. The visit is seen as a significant diplomatic effort to repair recent strains in the bilateral relationship and fast-track a pending trade agreement.
Unpacked:
Recent strains include increased US tariffs on Indian exports, US pressure on India to reduce Russian oil imports, and disagreements over market access and regulatory barriers, leading to tensions in trade and strategic cooperation.
Negotiations for a Bilateral Trade Agreement (BTA) are active, with officials aiming for a November 2025 conclusion despite US government shutdown delays. The agreement seeks to lower tariffs and boost trade across sectors, strengthening strategic ties.
India’s average applied tariff rate is 17% (39% on agricultural products), among the highest globally, while the US average is 3.3% (5% on agriculture). These disparities create barriers and are a major point of contention in ongoing trade talks.
Higher US tariffs on Chinese goods make Indian exports more competitive, especially in textiles and toys. This shift is expected to increase India’s exports to the US and strengthen its position as a key American trade partner.