India and US Strengthen Trade and Defence Ties in Talks Between Jaishankar and Rubio

External Affairs Minister S Jaishankar spoke with US Secretary of State Marco Rubio about enhancing trade, nuclear energy, and defence cooperation. They reaffirmed their commitment to a free Indo-Pacific region.

External Affairs Minister S Jaishankar recently engaged in a phone conversation with US Secretary of State Marco Rubio. Their discussion centred on collaboration in trade, critical minerals, nuclear energy, and defence. This dialogue followed the announcement by newly-appointed US ambassador Sergio Gor about upcoming interactions on trade issues between the two nations.

The conversation between Jaishankar and Rubio occurred as President Donald Trump declared a 25 per cent tariff on countries trading with Iran. Indian government sources indicated this tariff would have minimal impact on India, given that trade with Iran is less than USD 2 billion. Last year, India's trade with Iran was valued at USD 1.6 billion, making up only 0.15 per cent of India's total trade.

Trade and Economic Cooperation

During their call, Jaishankar and Rubio agreed to maintain communication on various matters. Jaishankar shared on social media that they discussed trade, critical minerals, nuclear cooperation, defence, and energy. An American readout highlighted ongoing bilateral trade agreement negotiations and both countries' interest in enhancing economic cooperation.

Rubio congratulated India for passing the sustainable harnessing and advancement of nuclear energy for transforming India bill. He expressed a desire to leverage this development to boost US-India civil nuclear cooperation and create more opportunities for American companies.

Regional Developments and Strategic Partnerships

The two leaders also exchanged views on regional developments, reaffirming their commitment to a free and open Indo-Pacific region. Meanwhile, Gor emphasised India's significance to the United States during his address at the US embassy. He stated that no partner is more essential than India and expressed his ambition to pursue an ambitious agenda as ambassador.

India-US relations faced challenges after President Trump imposed a 50 per cent tariff on Indian goods, including a 25 per cent levy related to Russian oil purchases. Despite multiple negotiation rounds last year aimed at finalising a bilateral trade deal, it remains unresolved due to Washington's demands for India to open its farm and dairy sectors.

Future Engagements

Gor mentioned that both nations are actively engaging in discussions about the proposed trade deal. He noted that another call regarding trade would take place soon. The ongoing dialogue highlights the strategic partnership between India and the United States as they work towards strengthening ties across various sectors.

The conversation between Jaishankar and Rubio underscores the importance of continued collaboration between India and the United States. Both countries aim to enhance their economic ties while addressing regional challenges together.

With inputs from PTI