The meeting between Prime Minister Narendra Modi and US President Donald Trump on the sidelines of the G7 Summit in France is likely one of the most closely watched diplomatic moments of the year.
The two leaders are scheduled to meet in Évian-les-Bains on June 17, marking their first face-to-face talks in more than 16 months. The meeting comes just days after US strikes on commercial tankers in the Gulf of Oman killed three Indian sailors, an incident that sparked anger in India and further strained an already complicated relationship with the Washington.
For PM Modi, the discussion won’t just revolve around raising concerns with Trump. India is dealing with the fallout of the recent US-Iran conflict, disruptions to global oil supplies and ongoing trade tensions with Washington. Against that backdrop, the meeting is being seen as an opportunity to steady relations that have become difficult over the past year.
From past tensions to a possible thaw in India–US ties at the G7?
When PM Modi visited Washington in February 2025, the mood was very different.
The two leaders launched the US-India COMPACT for the 21st Century and unveiled Mission 500, an ambitious plan aimed at taking bilateral trade to $500 billion by 2030. At the time, both countries spoke about a partnership built on mutual trust, shared interests and close people-to-people ties. It appeared that relations were entering a new phase.
But over the past year, disagreements over trade, tariffs, energy and global conflicts have complicated the relationship. Trade is expected to dominate the discussions between the two leaders.
At last year’s G7 Summit in Canada, the two leaders did not meet in person after Trump left the gathering early. Modi later declined an invitation to visit Washington.
Despite growing disagreements, the personal relationship between Modi and Trump continues to attract attention. Just last week, Trump congratulated Modi on becoming India’s longest-serving prime minister. “And a Great One he is!” Trump wrote on Truth Social.
The Modi-Trump meeting comes at a time when the global order is shifting rapidly. India and the United States continue to share concerns about China’s growing influence, but they often differ on issues involving Russia, Iran, trade and strategic autonomy.
India-US trade deal to be discussed at G7 Summit?
The two countries had hoped to complete the first phase of a bilateral trade agreement by late 2025, but negotiations dragged on longer than expected.
The US continues to push India to lower tariffs and open up sectors such as agriculture and imports. Washington argues that its trade deficit with India, which stands at $45.7 billion, needs to be reduced.
India, however, has resisted pressure in politically sensitive sectors, particularly agriculture, where major concessions could create several domestic challenges for the BJP government. Restrictions on genetically modified crops have emerged as one of the biggest sticking points in the talks.
Despite the differences, both sides are eager to make progress before higher US tariffs come into effect on July 9. Trump has previously said negotiations with PM Modi were “going great” and even hinted at a future visit to India. According to sources cited by ANI, the proposed trade agreement is now in its final stages, although US officials have made it clear that a final deal is unlikely to be signed during the G7 Summit itself.
West asia and hormuz discussion
The meeting comes at a time when instability in the Strait of Hormuz continues to affect global energy flow and maritime trade. Earlier on Tuesday, PM Modi had raised concerns about disruptions in maritime trade while speaking at the G7 Outreach Session on “Forging New Partnerships and Rebuilding International Solidarity”.
“We welcome the progress made in peace efforts in West Asia. This conflict has caused loss of life and property in our friendly countries in the region. Disruptions to maritime trade through the Strait of Hormuz have affected the global economy. Several Indian civilians have also lost their lives,” he said, addressing leaders including Donald Trump.
According to ANI, the two leaders are expected to focus on West Asia tensions, the strategic Strait of Hormuz, energy imports from the United States, and the long-pending India–US trade agreement.
Trump’s Pakistan comments remain a sore point
Another source of tension has been Trump’s repeated claim that he helped broker a ceasefire between India and Pakistan after the two countries fought a brief four-day conflict in May 2025.
PM Modi has never publicly endorsed that claim, and Trump has reportedly been unhappy that the Indian leader has neither acknowledged his role nor backed calls for him to receive the Nobel Peace Prize.
Death of Indian sailors spark outrage, PM Modi calls for ‘global trust, stronger maritime security’
PM Modi on Wednesday said the world is facing a “shortage of trust, not resources,” stressing that rebuilding confidence between nations is the biggest challenge of today’s global order. Speaking at a G7 outreach session in France, where he was seated alongside US President Donald Trump, Modi added that mutual trust is now the world’s most important strategic asset.
He also flagged the need to keep global sea lanes safe and ensure seafarers can work without fear, in an apparent reference to past tensions involving Indian sailors. “It is our responsibility to protect seafarers who connect all countries through maritime trade,” he said.
Three Indian sailors were killed during a US strike on an oil tanker carrying Iranian oil in the Sea of Oman. The incident triggered anger in India and increased pressure on Modi to raise the issue directly with Trump.
The vessel, identified as the Palau-flagged M/T Settebello, caught fire after US aircraft struck its engine room, leading to a large rescue operation. Later, India summoned a senior US diplomat following the incident, and the issue has since become politically sensitive at home.
The incident happened amid the backdrop of the US-Iran war. After Iran effectively closed the Strait of Hormuz, the US launched a naval blockade targeting ships suspected of carrying sanctioned Iranian oil.
Tariffs still a key sticking point
Relations were tested last year when the US sharply raised tariffs on Indian goods, pushing the total levy on some imports to 50%. The move came in two parts, a reciprocal tariff and an additional penalty linked to India’s continued purchases of Russian oil.
The standoff eased earlier this year after the two sides reached an interim trade deal. Under the arrangement, the US lowered tariffs to around 18%, while India agreed to buy more American energy and reduce duties on a range of US products.
But trade tensions have not disappeared completely. Washington recently imposed a steep duty on Indian solar imports and has also raised concerns over labour-related issues. The US is additionally pushing India to further reduce its dependence on Russian oil.
India, over time, has increased imports to keep energy prices stable at home. Washington saw this move as weakening sanctions pressure and responded with extra tariffs in mid-2025, adding to existing trade friction. India, however, has defended the decision as a practical step to protect its economy. In the Modi–Trump meeting, both sides are likely to look at ways to ease tensions
What is expected out of the meeting?
Energy is likely to be a major area of discussion. India is expected to explore increasing purchases of American LNG while both sides discuss the impact of instability around the Strait of Hormuz on global supply chains. India is attending the G7 Summit as a partner nation this year, marking its 13th participation in the outreach process.
The proposed India–US trade agreement is said to be in its final stages. Negotiations are moving steadily, and work on the deal is expected to be completed in the coming weeks. The two countries had already reached an interim trade agreement in February after nearly a year of discussions. The White House has also confirmed that advancing the trade pact will be a major focus of the meeting.