‘Not middle power, but power in the middle’: EAM S Jaishankar on India's global position

External Affairs Minister S Jaishankar stated that India and the U.S. are negotiating a proposed trade deal and are nearing a landing point, while emphasizing that the core foundations of their strategic partnership remain unchanged. Jaishankar made these remarks during a Bloomberg New Economy Forum, following Finance Minister Nirmala Sitharaman's recent comment that the talks have reached a plateau. He noted that they are awaiting a few elements and are cautious about disclosing details publicly.

The talks involve the Indian trade minister, the U.S. Trade Representative (USTR), and other officials aiming to finalize a bilateral trade pact. Jaishankar explained that negotiating with a country as large and influential as the U.S. involves both direct discussions between the two nations and how India fares in comparison to other competitive economies. He stated that the trade ministers, USTR, and the Commerce and Industry Minister are actively working to resolve these issues.

India's objective is to secure more favorable tariffs for its goods in the U.S. market compared to its competitors. The discussions began in early 2025 and aim to address tariff friction, eliminate non-tariff barriers, and enhance bilateral market access. In a recent statement, U.S. Trade Representative Jamie Pressly Greer acknowledged that the U.S. and India are working towards finalizing the deal but noted that an agreement was not imminent.

Jaishankar also discussed the U.S.'s evolving approach to tariffs and its commitment to re-industrialization, which underpins the tariff debate. He highlighted that every significant economy, including India, is engaged in negotiations with the U.S. to improve access to its economy and align with its re-industrialization efforts. Jaishankar emphasized that India is currently further along in these negotiations compared to many other countries.

Additionally, Jaishankar noted that the U.S. is re-evaluating its alliances and treaty relationships, particularly in Europe and some parts of East Asia. Despite the ongoing negotiations, Jaishankar reaffirmed that India's strategic partnership with the U.S. remains unchanged, as it is not an officially recognized alliance. The relationship has faced challenges in recent years, including punitive tariffs imposed by the U.S., changes in U.S. immigration policies, and restrictions on green-card processing for major IT firms.

However, Jaishankar indicated that these issues have not fundamentally altered the nature of their strategic partnership.