Pact with India in not-so-distant future: US Commerce Secy praises nation's economy

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Addressing the eighth edition of the annual US-India Strategic Partnership Forum (USISPF) Leadership Summit in Washington, Lutnick said, “You should expect a deal between the US and India in the not-too-distant future because I think we found a place that really works for both countries.”

“I would say very optimistic," he said when asked about the trade deal outlook as the two countries make progress towards finalising an agreement ahead of the July 9 deadline when President Donald Trump’s reciprocal tariffs will again kick in after a 90-day pause.

In a video which Lutnick later posted on X, he is heard saying, “We have a great relationship between the countries. I am optimistic for a trade deal soon that will benefit both nations.”

Lutnick's remarks come on the eve of a US delegation’s visit to India on June 5 and 6 for trade negotiations. This after Commerce Minister Piyush Goyal held talks with senior officials of the Trump administration during his recent four-day visit to the US from May 17 to 22.

India's principal negotiator for the trade deal with the US, Rajesh Agarwal, had also last week said that negotiations were going well and good outcomes could be expected soon.

However, he also said that India did certain things, like buying military gear from Russia and aligning with BRICS which seeks to reduce dollar dependence, that “rubbed the US the wrong way”.

The US Commerce Secretary said President Trump was now willing to “call out things and say them as they are”. "Now, the President is willing to call out things straight away, meaning India is very protectionist with tariffs. They have a 100 per cent tariff on this and a 100 per cent tariff on that. And if you ask them why, the answer is, ‘I don't know why. It just is'.... The idea of really looking at those things, thinking about them and bringing them down to a level that is reasonable and appropriate so we can be great trading partners with each other, I think is absolutely on the table and it's not stressful and the sides are now working to make this a proper trading relationship," he said in his address.

To stem the trade deficit with India, Lutnick said the US was seeking reduction in tariffs on agricultural products and also enhanced purchase of defence equipment. He said countries engaging the US for early trade negotiations would get better deals.

“India is trying hard to be one of the earlier countries, which I appreciate," he said.

Lutnick also described India as an extraordinary economy, saying, "The core population of India has the drive and ambition and that's why the Indian economy will always continue to grow and thrive because it has that from the underpinning and so you can do things in India that in many other countries, you just can't get done." He said President Trump thinks “America first”, but not “America only” or “America exclusively”.

“First, he's got to take care of home, so we're big and strong, but then he's going to take care of his allies. He's going to make sure he takes care of India, who he deeply, deeply admires and respects and we are going to have a great, great relationship together," Lutnick said.

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