"Recognition that the relationship is important to both, renewed effort is now being made": Ex Indian envoy on US-India trade

New Delhi [India], September 10 : Former Indian Ambassador to the US, Arun Singh, highlighted that the trade tensions between the US and India seem to be thawing, following Prime Minister Narendra Modi's reference to the United States as India's "natural partner" in a reply to a post by US President Donald Trump.

Speaking withSingh emphasised that despite challenges, both countries appear to recognise the importance of their relationship.

"On Friday, he (Trump) commented publicly and in social media that the US-India relationship is a special relationship and there are moments that the two countries have on occasion but it will all work out all right and the Prime Minister had responded very positively and then this morning he has come out with another comment saying that he's happy to announce that trade negotiations have resumed and he's confident that soon some outcome will be there and the Prime Minister has responded. So I would say that I think from both sides, there is a recognition that the relationship is important to both and a renewed effort is now being made to stabilise the relationship...," Singh told ANI.

President Trump publicly acknowledged the US-India partnership as "special," and Prime Minister Narendra Modi responded positively. Trade negotiations have resumed, with Trump expressing confidence in reaching a favourable outcome soon.

Trump on Tuesday (US local time) said that the US and India will resume negotiations to address "trade barriers" between the two countries.

In a post on his social media platform, Truth Social, Trump wrote, "I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!"

Responding to Trump, in a post on X, PM Modi described New Delhi and Washington as "natural partners" and said he was confident about the progress of the negotiations. The PM also expressed his willingness to speak to Trump.

"India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people," PM Modi said in the X post.

New Delhi is facing global uncertainties due to heightened economic tensions following the US imposition of a 50 per cent tariff on Indian imports, including an additional 25 per cent due to its purchase of Russian crude oil, which, according to Washington, fuels Moscow's efforts in its conflict with Ukraine.

Singh also highlighted the irony of the situation, where the US, under the Biden administration, had actually encouraged India to purchase more oil from Russia to stabilise global energy prices.

The Trump administration has imposed tariffs on India due to these very purchases, leaving Indian officials questioning the justification behind this move.

Singh attributed this policy flip to Donald Trump's politics and his associates amplifying his stance. Interestingly, there are voices within the US criticising this approach, including statements from House Foreign Affairs Democrats and other senior leaders.

"Indian officials have said that the tariff imposed because of purchases from Russia is not justified at all. Because in the Biden administration, it was the US that encouraged India to buy more from Russia to stabilise the global energy prices...Now, how do you build a relationship if the policy of your partner suddenly changes? So that was the dilemma. I think perhaps on the US side also that there was a recognition that, with whatever measures they were taking against India. I would say it's a measure taken by President Trump. Because all of this is emanating from the politics of Donald Trump and people around him who are essentially amplifying whatever he's saying. There are voices in the US criticising the administration for what they're doing. The House Foreign Affairs Democrats have come out with a statement, along with many other senior leaders...President Trump may have felt that they had gone too far in terms of the pressure and perhaps there was a need to move away a bit from that," said Singh.

Earlier on Friday (local time), President Trump, while making an announcement in the White House, was asked by ANI, "Are you ready to reset relations with India at this point?".

The US President replied, "I always will. I'll always be friends with (PM) Modi. He's a great Prime Minister. I'll always be friends, but I just don't like what he is doing at this particular moment. But India and the United States have a very special relationship. There is nothing to worry about. We just have moments on occasion."

Meanwhile, the Indian stock markets continued their upward momentum, supported by positive global cues and the ongoing exchange of optimistic posts on social media by the two leaders.

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