NEW DELHI: The United States Commerce Secretary on Tuesday said India’s longstanding arms trade with Russia had previously strained ties with Washington, but a gradual shift towards US-made military equipment is now helping pave the way for a bilateral trade deal.
“There were certain things that the Indian government did that generally rubbed the United States the wrong way,” Lutnick said while addressing the eighth US-India Strategic Partnership Forum in Washington, DC. “For instance, you generally buy your military gear from Russia. That's a way to kind of get under the skin of America if you're going to buy your armaments from Russia. I think India starting to move towards buying military equipment from the United States, which then goes a long way.”
Lutnick confirmed that a trade agreement could be sealed in the “not too distant future,” suggesting momentum has picked up between the two nations. “You should expect a deal between the United States and India in the not too distant future,” he said. “When they put the right person in India, put the right person on the other side of the table, and we've managed (that), I think.”
India’s historical reliance on Russian defence suppliers has long been a sore point in its ties with Washington, especially amid increasing US sanctions on Russian entities. But Lutnick underlined that things are changing. “The President calls that out directly and specifically, and the Indian government is addressing it specifically. And that’s how you move on to a really positive place. Put it on the table, address it straight on, resolve it straight on and get to a really good place. And I think that’s where we are,” he said.
The Forum, which focused on scaling bilateral trade to $500 billion, saw strong messaging on accelerating negotiations. India’s trade with the US currently stands around $191 billion, and both sides aim to conclude the first phase of a bilateral trade deal by September or October 2025.
Commerce Minister Piyush Goyal echoed the sentiment, saying both countries were committed to “preferential access” for businesses and working together towards the agreement.
Lutnick acknowledged the urgency surrounding the current negotiations. “These kinds of deals used to take two or three years and we’re trying to get them done in a month,” he said. He also praised India’s proactive approach: “I think India is trying hard to be one of the earlier countries, which I appreciate.”
Tariff barriers are also under discussion, with Lutnick stating that reducing them was “absolutely on the table” to build a mutually beneficial trading partnership.
He further attributed the warm diplomatic climate to the strong rapport between PM Narendra Modi and US President Donald Trump. “President Donald Trump is the only person in our administration elected by the full United States of America and so does PM Modi in India,” he said, calling the relationship “pretty unique” and conducive for smooth negotiations.
The forum also featured warm remarks from US lawmakers. Congressman Rich McCormick hailed Modi as “the most influential politician ever in India,” and praised India’s growing alignment with American capitalist values.
Second Lady Usha Vance added a personal touch, recounting her family's visit to India. “Our son was just so taken by everything and then taken by the entire cart of mangoes… he announced to the Prime Minister that he thought he could maybe live there.”
The comments come as both sides work to conclude the trade deal before the July 9 deadline set by President Trump. While Washington had previously threatened broad tariffs on trade partners—excluding China—those have been paused for 90 days as negotiations continue.
“There were certain things that the Indian government did that generally rubbed the United States the wrong way,” Lutnick said while addressing the eighth US-India Strategic Partnership Forum in Washington, DC. “For instance, you generally buy your military gear from Russia. That's a way to kind of get under the skin of America if you're going to buy your armaments from Russia. I think India starting to move towards buying military equipment from the United States, which then goes a long way.”
Lutnick confirmed that a trade agreement could be sealed in the “not too distant future,” suggesting momentum has picked up between the two nations. “You should expect a deal between the United States and India in the not too distant future,” he said. “When they put the right person in India, put the right person on the other side of the table, and we've managed (that), I think.”
#WATCH | Washington DC | US Secretary of Commerce Howard Lutnick says, "...There were certain things that the Indian government did that generally rubbed the United States the wrong way. For instance, you generally buy your military gear from Russia. That's a way to kind of get… pic.twitter.com/CxoqRZQLJ2
— ANI (@ANI) June 3, 2025
India’s historical reliance on Russian defence suppliers has long been a sore point in its ties with Washington, especially amid increasing US sanctions on Russian entities. But Lutnick underlined that things are changing. “The President calls that out directly and specifically, and the Indian government is addressing it specifically. And that’s how you move on to a really positive place. Put it on the table, address it straight on, resolve it straight on and get to a really good place. And I think that’s where we are,” he said.
The Forum, which focused on scaling bilateral trade to $500 billion, saw strong messaging on accelerating negotiations. India’s trade with the US currently stands around $191 billion, and both sides aim to conclude the first phase of a bilateral trade deal by September or October 2025.
Commerce Minister Piyush Goyal echoed the sentiment, saying both countries were committed to “preferential access” for businesses and working together towards the agreement.
Lutnick acknowledged the urgency surrounding the current negotiations. “These kinds of deals used to take two or three years and we’re trying to get them done in a month,” he said. He also praised India’s proactive approach: “I think India is trying hard to be one of the earlier countries, which I appreciate.”
Tariff barriers are also under discussion, with Lutnick stating that reducing them was “absolutely on the table” to build a mutually beneficial trading partnership.
He further attributed the warm diplomatic climate to the strong rapport between PM Narendra Modi and US President Donald Trump. “President Donald Trump is the only person in our administration elected by the full United States of America and so does PM Modi in India,” he said, calling the relationship “pretty unique” and conducive for smooth negotiations.
The forum also featured warm remarks from US lawmakers. Congressman Rich McCormick hailed Modi as “the most influential politician ever in India,” and praised India’s growing alignment with American capitalist values.
Second Lady Usha Vance added a personal touch, recounting her family's visit to India. “Our son was just so taken by everything and then taken by the entire cart of mangoes… he announced to the Prime Minister that he thought he could maybe live there.”
The comments come as both sides work to conclude the trade deal before the July 9 deadline set by President Trump. While Washington had previously threatened broad tariffs on trade partners—excluding China—those have been paused for 90 days as negotiations continue.
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