India-US Bilateral Trade Agreement: Time To Strike A Deal

/5 min read
The signs are auspicious as the Indian economy has shown a robustness that embellishes its reputation as an attractive destination. The gamble to reduce GST rates has worked and consumption has perked up
India-US Bilateral Trade Agreement: Time To Strike A Deal
(Illustration: Saurabh Singh) 

The India-US bilateral trade agreement is inching towards a conclusion with Prime Minister Narendra Modi and President Donald Trump holding a detailed conversation over the phone that discussed all aspects of the bilateral relationship. It is clear the red lines identified by India in terms of agriculture, dairy and some small industries being “no-go” areas remain unchanged. US Trade Representative Jamieson Greer confirmed that the US has been offered unprecedented access to Indian markets and this includes a big step up in defence and energy purchases. It is now up to Trump to give the green light. Although just when the mercurial leader will do so is a guessing game, it does seem the deal will be inked soon.

Sign up for Open Magazine's ad-free experience
Enjoy uninterrupted access to premium content and insights.

For one, the US-India relationship is a significant lever for the Trump administration in working out differences with China, and the US president’s unwarranted bellicosity towards India had managed to push New Delhi and Beijing towards one another. The China-India thaw—it is not quite a reset—has come in for strong criticism in Washington as experts and former diplomats pointed out that Trump’s actions have prodded Modi to reach out to Xi Jinping despite his deep strategic distrust of the communist giant.

Now, the signs are auspicious as the Indian economy has shown a robustness that embellishes its reputation as an attractive destination. The gamble to reduce GST rates has worked and consumption has perked up. It might well have gone the other way with the Trump tariffs sending markets into a funk. Given India’s resilience, the US might conclude it is time to seal a deal.

open magazine cover
Open Magazine Latest Edition is Out Now!

2025 In Review

12 Dec 2025 - Vol 04 | Issue 51

Words and scenes in retrospect

Read Now

Christmas Cheer In the US

Washington DC and much of North America is in the grip of a deep chill and the city is covered with a blanket of snow. The birch trees are bare and political activity is slowing as the holidays approach. The Christmas and New Year season will not witness much government business and the only significant topic of discussion is the Ukraine war, which promises to drag on into 2026. But the US capital is in good cheer with special lights across parks drawing hundreds of visitors in the evenings despite the cold. The US economy, despite deeply contrary predictions, is still to experience serious repercussions of the tariff policy and the public mood is upbeat.

A Game of Dummies

Gerrymandering, or realigning electoral districts to enhance the incumbent advantage, is a game both parties play in the US and has been in force much before the term was invented. Right now, the anti-Trump camp is absorbed with the US president’s attempts to rework electoral boundaries in Texas that it sees as part of an exercise to ‘steal’ the November 2026 mid-term elections. The idea is to spread out areas of Republican influence more thinly, but evenly across newer districts to disadvantage the Democrats. But sometimes, the plan can backfire. In that case, it is called ‘Dummymandering’.

Nadda’s Golden Touch

BJP leader JP Nadda has had an extraordinary five-and-a-half years as party president, beginning June 2019. He will be counted as one of BJP’s most successful presidents, having helmed the party when it won a second consecutive Lok Sabha majority in 2019 and returned to office for a third term in 2024. That apart, BJP has won dozens of state elections and the last 12 months have seen a spectacular resurgence after a sub-par Lok Sabha score. Nadda worked with Prime Minister Narendra Modi when the latter was in-charge of Himachal Pradesh. Modi was impressed by young Nadda’s zeal and zest for politics.

Jail Road Food

Delhi Chief Minister Rekha Gupta’s plan to move Tihar Jail to the outskirts of the city might be an overdue measure as the prison suffers from overcrowding. But Jail Road has been a landmark with a number of eateries attracting visitors in large numbers. Odd as it might seem, the scene outside the jail is animated even as hundreds of undertrials and convicts—including notorious gangsters—cool their heels in its highly guarded precincts. The eateries include Chinese, Indian and barbeque joints.

Saffron Blooms in Kerala

BJP hailed its success in the Thiruvananthapuram municipal corporation as a breakthrough that holds out the promise of even better results in the Kerala Assembly election due in April 2026. The results are a serious setback for the ruling Left Front that has had a long run of success. The Left’s decline is a gain for the Congress-led UDF, but the emergence of BJP and its partners can make the elections at least partially three-cornered. The prospects of BJP progressing in a geography where it has struggled led to a predictable meltdown with online anti-BJP activists bemoaning the fall of another ‘secular’ bastion.

Need More Parsi Flavours

It is the centenary year of the Parsi Anjuman in Delhi but the capital regrettably lacks a choice of Parsi food. The Anjuman has a food outlet but that is practically the only choice in the city. There are options by way of a couple of restaurants and online food suppliers but they are not able to do justice to the high reputation of Parsi food. That’s a pity in a city where many Parsis became famous as lawyers, judges, journalists, business people, and artists.