New York: External Affairs Minister S Jaishankar said a trade agreement between India and the United States, if finalised, could contribute to improving bilateral ties, while acknowledging that negotiations had proved more complicated than initially expected.
Speaking at an interaction hosted by the Asia Society in New York after the high-level segment of the 81st UN General Assembly, Jaishankar said expectations of quick progress in the negotiations had been tested by the complexity of the issues involved.
“India is a society of small producers, small agriculture producers, small factories,” Jaishankar said, pointing to differences in the structure of the two economies and the gap in per-capita income between India and the US.
He said trade negotiations required patience and detailed discussions, adding that the talks had now reached a stage where there was “more or less an understanding on the trade agreement”. However, he said the timing of its conclusion remained linked to developments in the US tariff framework, including the ongoing Section 301 process.
Jaishankar noted that the period taken to advance the negotiations had created “bumps” in the bilateral relationship. “If that agreement is closed out, that would be one point which would contribute to a better relationship,” he said.
The minister also pointed to the wider impact of domestic developments in the US on bilateral ties, particularly over mobility. He said issues that were earlier viewed primarily through an economic lens were increasingly being influenced by their political dimensions.
Jaishankar further said diplomacy could no longer be viewed solely as an interaction between governments, noting the growing influence of public opinion in democratic societies in the social media era.
India and the US had announced a framework for the first phase of a bilateral trade agreement in February, while subsequent changes to the US tariff regime led to further negotiations. The two countries have continued discussions as Washington works through additional tariff measures and investigations.
Jaishankar said New Delhi remained hopeful that the relationship would move in a positive direction, but stressed that progress would depend on addressing the issues currently facing the two countries.
“We would certainly hope for and expect the relationship to move on an upward trajectory,” he said, adding that moving forward on some of the outstanding issues would help strengthen bilateral ties.
