US calls India ‘critical partner’ as both sides push for trade deal, weigh Modi-Trump meet

As Washington and New Delhi scramble to revive stalled trade negotiations, US Secretary of State Marco Rubio on September 23 declared India a “relationship of critical importance” for America, flagging trade, defense, energy, pharmaceuticals and critical minerals as top agenda items.

Rubio’s remarks came after an hour-long meeting with External Affairs Minister S Jaishankar in New York, their first since the Trump administration doubled tariffs on Indian imports to 50% in retaliation for New Delhi’s purchase of Russian oil and hiked the H-1B visa fee to $100,000.

With Commerce Minister Piyush Goyal also holding parallel discussions with US interlocutors, the two sides are exploring a high-level political push — potentially a meeting between Prime Minister Narendra Modi and President Donald Trump. Officials say the most realistic window could be late October, when both leaders are expected at the ASEAN and East Asia summits in Kuala Lumpur. But that hinges on whether a trade deal can be clinched by the October 26 deadline.

Jaishankar also met Sergio Gor, Trump’s nominee for Ambassador to India, and separately engaged with EU Foreign Ministers as Brussels pushes to position itself as a more “reliable” economic partner amid concerns over US unpredictability. The EU-India leaders’ summit early next year is expected to build on this momentum.

Rubio and Jaishankar also reaffirmed their commitment to the Quad framework, stressing cooperation to ensure a “free and open Indo-Pacific” — a pointed reference to China’s assertive moves in the region.

While Washington released a detailed readout underscoring areas of convergence, New Delhi struck a more cautious tone. Jaishankar said on X that the conversation covered “a range of bilateral and international issues of current concern” and stressed the importance of “sustained engagement to progress on priority areas.”

On the UNGA sidelines, Jaishankar joined an informal EU Foreign Ministers’ meeting with counterparts from Brazil and Mexico, where discussions spanned multilateralism, Ukraine, Gaza, energy, and trade. EU foreign policy chief Kaja Kallas declared: “The EU is a reliable actor. We support multilateralism, free trade, and a world grounded in the UN Charter.”

The diplomatic choreography underscores the stakes: for New Delhi, balancing its ties with Washington and Brussels is central to securing energy supplies, defense sales, and resilient supply chains for critical minerals — even as it braces for tough bargaining with the Trump administration.