India’s Russian arms deals ‘rubbed US the wrong way’, but trends changing now: US Commerce Secretary Howard Lutnick

US signals imminent trade agreement with India

US Commerce Secretary Howard Lutnick announced that a trade deal between the United States and India could be finalized soon. Speaking at the US-India Strategic Partnership Forum in Washington, DC, he said, “You should expect a deal between the United States and India in the not-too-distant future.”

Lutnick emphasized the importance of the right diplomatic representatives and cooperation on both sides, adding that significant alignment now exists in strategic and economic priorities.

India’s defence pivot enhancing bilateral trust

One of the persistent issues in US-India relations has been India’s historical reliance on Russian defence equipment. Lutnick remarked that such preferences often created friction with the US. However, he noted a recent shift in India’s procurement strategy toward American defence manufacturers, describing it as a key step toward a stronger alliance.

He also criticized India’s involvement in BRICS initiatives that aim to undermine dollar dominance, saying such moves are counterproductive to US relations. Despite these challenges, he praised India for addressing concerns transparently.

$500 billion trade target by 2030

The forum also outlined an ambitious goal to expand US-India trade to $500 billion. Current trade stands at approximately $191 billion. Lutnick and Indian Commerce Minister Piyush Goyal confirmed that both nations aim to finalize the first phase of the trade agreement by September or October 2025.

Goyal noted, “Both countries are committed to working together, both countries desire to give preferential access to each other’s businesses.”

Accelerated negotiations underway

Lutnick admitted that the current pace of negotiations is uncharacteristically fast. “These kinds of deals used to take two or three years, and we’re trying to get them done in a month,” he said, adding that India’s responsiveness is commendable.

He also stressed that reducing tariffs is “absolutely on the table” to ensure more balanced trade terms between the two nations.

Modi-Trump relationship seen as a catalyst

Lutnick highlighted the personal rapport between Prime Minister Narendra Modi and President Donald Trump as a significant asset. “They are both national leaders elected by the whole country, which creates a unique understanding,” he said.

This positive relationship has created a strong foundation for trade talks and deeper political alignment.

US lawmakers praise Modi’s leadership

Congressman Rich McCormick, co-chair of the India Caucus, described Modi as “the most influential politician ever in India, probably the most influential person in India since Gandhi.” He emphasized Modi’s personal humility and strong grassroots connection.

McCormick added that India’s economic outlook now aligns closely with American values, praising its capitalist momentum.

Personal touch in diplomacy

Second Lady Usha Vance, who visited India in April, shared a warm anecdote from her family’s meeting with Modi. She recalled her son’s fascination with Indian hospitality, especially the mangoes offered during the visit, which made a lasting impression.

“These personal connections build long-term goodwill,” she said.

Trade deal deadline approaching

The urgency to finalize the trade deal is driven by a July 9 deadline set by President Trump. While the US had previously warned of sweeping tariffs, those plans are currently on hold for 90 days to allow negotiations to proceed.

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