India's Russian arms deals ‘rubbed US the wrong way', but trends changing now: US Commerce Secretary Lutnick

Economic Times

2 days ago

Reuters FILE PHOTO: U.S. Commerce Secretary Howard Lutnick speaks during a meeting between U.S. President Donald Trump and Canadian Prime Minister Mark Carney in the Oval Office at the White House in Washington, D.C., U.S., May 6, 2025. REUTERS/Leah Millis/File Photo
US Commerce Secretary Howard Lutnick has said a trade agreement between the United States and India could be finalised in the 'not-too-distant future', pointing to a growing alignment in strategic and economic interests.
Speaking at the eighth US-India Strategic Partnership Forum in Washington, DC, Lutnick confirmed that 'you should expect a deal between the United States and India in the not too distant future.' He added, 'When they put the right person in India, put the right person on the other side of the table, and we've managed (that), I think.'
His comments arrive as both sides rush to reach a deal before the 9 July deadline set by US President Donald Trump. The US had earlier threatened sweeping tariffs to rebalance what it called unfair trade arrangements, with the exception of China. However, Washington later paused those tariffs for 90 days.Lutnick highlighted that one of the issues previously souring US-India ties was New Delhi's traditional preference for purchasing military equipment from Russia.'There were certain things that the Indian government did that generally rubbed the United States the wrong way,' Lutnick said. 'For instance, you generally buy your military gear from Russia. That's a way to kind of get under the skin of America if you're going to buy your armaments from Russia. I think India starting to move towards buying military equipment from the United States, which then goes a long way.'
However, Lutnick made it clear that this is changing: 'I think India [is] starting to move towards buying military equipment from the United States, which then goes a long way. And these kind of things—just creating that relationship—being a part of BRICS, which is, 'oh, let's move to not support the dollar and dollar hegemony'—that's not really the way to make friends and influence people in America.'He praised India's openness to addressing these concerns directly. 'The President calls that out directly and specifically, and the Indian government is addressing it specifically. And that's how you move on to a really positive place. Put it on the table, address it straight on, resolve it straight on and get to a really good place. And I think that's where we are,' he said.India's historical reliance on Russia for defence equipment has long been a sticking point in its relations with Washington. With the backdrop of increasing US sanctions on Russian firms and growing pressure on global partners to reduce ties with Moscow, New Delhi's procurement strategy has drawn scrutiny. Lutnick acknowledged this history but stressed that things are changing. 'The President calls that out directly and specifically, and the Indian government is addressing it specifically. And that's how you move on to a really positive place,' he said. He urged transparency and direct engagement, saying, 'Put it on the table, address it straight on, resolve it straight on and get to a really good place. And I think that's where we are.'The US-India Strategic Partnership Forum, where Lutnick spoke, focused on scaling up trade and political engagement. Ahead of the summit, Lutnick was expected to 'share his insights on strengthening the U.S.-India strategic and economic partnership to achieve the goal set by President Trump and Prime Minister Modi for $500 billion in bilateral trade.'India's current trade with the US stands at approximately $191 billion. Both countries have agreed to negotiate the first phase of a broad bilateral trade agreement by September or October 2025. Commerce Minister Piyush Goyal also confirmed progress, saying, 'Both countries are committed to work together, both countries desire to give preferential access to each other's businesses and we are working towards the bilateral trade agreement.'The aim is to more than double trade volume by 2030.At the forum, Lutnick acknowledged that trade deals of this scale are typically slow-moving. But current urgency has created momentum. 'These kinds of deals used to take two or three years and we're trying to get them done in a month, which is just not the ordinary DNA of trading relationships between countries,' he said. He also applauded New Delhi's approach: 'I think India is trying hard to be one of the earlier countries, which I appreciate.'Lutnick, a known supporter of using tariffs as negotiation tools, clarified that lowering India's tariff barriers was 'absolutely on the table.' He said, 'Bringing them down to a level that is reasonable and appropriate so we can be great trading partners with each other, I think is absolutely on the table.'The commerce secretary credited the personal connection between Prime Minister Narendra Modi and President Trump as a foundation for smooth negotiations. 'President Donald Trump is the only person in our administration elected by the full United States of America and so does PM Modi in India,' he said, noting that this similarity creates a 'pretty unique' understanding.'This relationship is very strong and positive, making way for an easy path to trade negotiations because we start from a very positive place,' Lutnick added.The admiration didn't end there. Rich McCormick, US Congressman and co-chair of the India Caucus, described Modi as 'the most influential politician ever in India, probably the most influential person in India since (Mahatma) Gandhi.' He also praised Modi's grassroots connection: 'People who knew him before he became the Prime Minister talked about him staying and sleeping on the floor when they came to visit.'McCormick added that India's economic trajectory now mirrors American values: 'They're on the right track, as a matter of fact, in some ways, I think they're almost more American than we are right now, in that capitalistic mindset.'Second Lady Usha Vance, who visited India in April with Vice President JD Vance and their children, also shared a personal anecdote. Recalling their visit to the Prime Minister's residence, she said, 'Our son was just so taken by everything and then taken by the entire cart of mangoes that was available for him to eat that he announced to the Prime Minister that he thought he could maybe live there.'She added, 'They've been all over the place and had wonderful opportunities to see the world, but this was really special to them.'
(with inputs from ANI)