'Great friend in PM Modi': Trump praises India as key Indo-Pacific ally

Amid renewed diplomatic outreach and ongoing trade negotiations, the United States Embassy in India on Tuesday shared a message from President Donald Trump describing India as an "amazing country" and Prime Minister Narendra Modi as a "great friend." This signals an apparent thaw following months of tariff friction.

"India is home to one of the world’s oldest civilisations. It is an amazing country and an important strategic partner for America in the Indo-Pacific region. We have a great friend in PM Modi," the embassy quoted Trump as saying.

The timing of the message is significant. It comes days after Prime Minister Modi and President Trump held a phone conversation where both leaders reviewed the progress in bilateral ties and discussed global developments. "India and the US will continue to work together for global peace, stability and prosperity," PM Modi said, calling the discussion "warm and engaging."

US Deputy Trade Representative Rick Switzer recently visited India and held talks with senior Indian officials, including Commerce Secretary Rajesh Agrawal, to narrow gaps and explore the framework for a new trade deal. 

On Monday, Commerce Secretary Rajesh Agrawal said India and the US were on the brink of finalising an initial framework agreement. "We are very close on closing the initial framework deal, but I don't want to put a timeline," Agrawal told reporters in New Delhi, following six rounds of bilateral trade talks. 

These discussions between both countries have addressed both a full-fledged bilateral trade agreement (BTA) and an interim arrangement to ease tariff burdens on both sides.

Earlier this year, the Trump administration imposed steep reciprocal tariffs on Indian goods-25 per cent for trade disputes and an additional 25 per cent linked to India's continued purchase of Russian oil. With total duties touching 50 per cent, India became the highest-taxed US trade partner.

Last month, Trump had also criticised India for allegedly "dumping rice" in the US market. However, during his recent call with Modi, he reportedly adopted a softer tone to keep dialogue open as both sides attempt to resolve their differences and work toward a long-pending bilateral trade agreement.