In a significant move to mend and strengthen the bilateral relationship, External Affairs Minister S Jaishankar met with US Secretary of State Marco Rubio on Monday, marking the first top-level talks following recent tensions over tariffs and H-1B visa changes. The high-stakes meeting took place on the sidelines of the 80th United Nations General Assembly session, with discussions expected to focus heavily on two key flashpoints: H-1B visa concerns and broader trade issues.
Renewed Push for a Trade Deal
New Delhi and Washington are actively working toward a crucial trade agreement. Commerce Minister Piyush Goyal is currently leading a delegation in Washington for negotiations, signalling a serious effort to stabilize the economic partnership. Tensions had recently flared after the Trump administration imposed 25 per cent tariffs on Indian goods. This was followed by another 25 per cent levy linked to India’s purchase of Russian oil, which the US administration has expressed concern about. Despite these setbacks, the two countries have resumed discussions on a Bilateral Investment Treaty (BIT) aimed at restoring stability.
US President Donald Trump has expressed confidence that the two sides will “have no difficulty” in reaching a deal, taking to Truth Social to praise PM Modi’s leadership and thanking him for supporting peace efforts in Ukraine. PM Modi reciprocated, pledging to strengthen India-US ties. “Positive discussions were held” during the September 16 visit of officials from the Office of the United States Trade Representative (USTR) to India, according to a release from the Ministry of Commerce and Industry.
H-1B Visa Fee Hike Clarified
The announcement of Trump’s order to raise H-1B visa application fees to $100,000 had initially unsettled thousands of skilled workers, many of them Indian, who are vital to the American technology sector. However, the White House later clarified that the substantial increase applies only to new applicants, offering a reprieve to current visa holders. This clarification is a key talking point in the ongoing diplomatic discussions. The meeting between Jaishankar and Rubio follows their last talks in Washington in July during the 10th Quad Foreign Ministers’ Meeting. During recent Senate hearings for US Ambassador to India nominee Sergio Gor, Secretary Rubio underscored the importance of the relationship, describing India as “one of the top relationships that the US has in the world today.” The diplomatic momentum suggests both nations are prioritizing the repair of the relationship and a path forward for closer economic and strategic alignment.
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