Prime Minister Narendra Modi and US President Donald Trump are expected to hold key discussions on a possible India-US trade agreement during their meeting on the sidelines of the upcoming G7 Summit 2026 in France, with senior American officials indicating that economic ties and ongoing trade negotiations will be a major focus.
The meeting that is likely to take place during the June 16-17 summit in Evian-les-Bains, will mark the first in-person interaction between PM Modi and President Trump since their Washington meeting in February 2025. The expected talks come at a crucial time as both countries continue negotiations on a bilateral trade deal while also managing tensions over recent US military actions in the Gulf region.
Meanwhile, the India-US trade negotiations have come to the final stage, with only “1%” of the proposed interim agreement left to be finalised, according to US Ambassador Sergio Gor.
The United States Trade Representative has also determined under Section 301 of the Trade Act of 1974 that the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens or restricts US commerce, and are thus actionable under Section 301(b) of the Trade Act.
Trade deal likely to dominate Modi-Trump talks
Ahead of the summit, senior US officials confirmed that trade negotiations are expected to feature prominently in the conversation between PM Modi and President Trump.
A senior US administration official said the possibility of a trade agreement would likely be discussed, adding that both countries have been engaged in intensive negotiations over the past year after signing a joint framework agreement earlier this year.
However, officials clarified that while discussions are expected to move forward, no final agreement is likely to be signed during the summit.
US trade representative set to visit India after summit
According to a Reuters report, US Trade Representative Jamieson Greer is expected to travel to India shortly after the G7 summit to continue negotiations and push discussions forward.
US officials indicated optimism about reaching an agreement in the near future but stressed that technical-level negotiations still remain before both sides can finalise a deal.
“We think a very good deal is possible. I don’t think we’ll close that deal at the G7,” a senior US official told reporters.
Economic partnership remains central to bilateral ties
American officials described India and the US as natural economic partners, highlighting significant potential for expanding cooperation across sectors such as energy, industrial manufacturing and select agricultural products.
At the same time, US officials acknowledged that certain aspects of India’s regulatory and economic framework continue to pose challenges for American businesses operating in the country.
“There are a lot of approaches to the economy in India that make it difficult for our companies to do business, so we are trying to work through some of those,” the official said.
Gulf tensions add complexity to diplomatic engagement
The upcoming meeting also comes against the backdrop of recent tensions after US missile strikes targeted India-linked commercial vessels operating near the Strait of Hormuz.
One such strike on June 10 reportedly killed three Indian seafarers, triggering strong protests from New Delhi. External Affairs Minister S Jaishankar had recently conveyed India’s strong objection to Washington over attacks impacting commercial shipping routes in the Gulf.
While trade is expected to dominate the bilateral talks, the maritime security issue could also feature in the wider diplomatic engagement.
Leaders expected to review progress on ongoing negotiations
US officials said the Modi-Trump meeting will primarily serve as an opportunity for both leaders to review progress made so far in trade negotiations and assess the next steps required to move closer to an agreement.
Officials also reiterated Trump’s negotiating position, saying the US president remains focused on securing what he considers a “very good deal” before signing any agreement.
Although a final breakthrough is unlikely in France, the meeting is expected to play a key role in shaping the future direction of the India-US economic partnership as both countries look to deepen strategic and commercial ties.