External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio held a detailed phone conversation on Tuesday to discuss trade, defence, nuclear cooperation, energy, and critical minerals, marking a significant engagement amid months of strained India-US relations.

The call comes at a time when bilateral ties have faced challenges not seen in over two decades, primarily due to unresolved trade disputes and US tariff measures on Indian goods. President Donald Trump’s imposition of 50% tariffs in mid-2025, including a 25% penalty related to India’s purchase of Russian energy, triggered a diplomatic rift. Subsequent negotiations on a bilateral trade agreement had repeatedly stalled, with multiple rounds of talks failing to yield results.

In a social media post following the conversation, Jaishankar stated, “Just concluded a good conversation with @SecRubio. Discussed trade, critical minerals, nuclear cooperation, defence and energy.” He added that both sides agreed to “remain in touch on these and other issues”, though he did not provide further details.

The US State Department, however, provided additional insights. Spokesperson Tommy Pigott said the two leaders discussed ongoing trade negotiations and shared interests in strengthening economic cooperation. Rubio also congratulated India on enacting the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) law, expressing interest in expanding US-India civil nuclear cooperation and exploring opportunities for American companies. The discussions also covered energy security and critical mineral supply chains, areas where the US has been keen on diversifying away from China’s dominance.

US ambassador-designate Sergio Gor, who arrived in New Delhi on Monday, described the conversation as a “positive call” and noted that it included discussion of next steps in trade negotiations and a possible meeting next month. Gor also reaffirmed the US commitment to India’s inclusion in Pax Silica, the American initiative aimed at building secure and resilient global supply chains for semiconductors and AI technology.

Background: Strained Relations

India-US relations faced mounting tensions following the Trump administration’s imposition of tariffs on Indian exports in mid-2025. These tariffs, particularly the 25% penalty on Russian energy purchases, severely affected trade and created friction at multiple levels of the bilateral relationship. Additionally, trade negotiations aimed at a comprehensive bilateral agreement repeatedly stalled. US Commerce Secretary Howard Lutnick had suggested that a deal could not be concluded in 2025 because Prime Minister Narendra Modi did not engage directly with Trump—a claim the Indian government promptly rejected.

Relations were further complicated by Trump’s controversial claims of mediating a ceasefire in the May 2025 India-Pakistan conflict. India rejected these assertions, expressing concern over Trump’s perceived closeness with Pakistan Army chief Field Marshal Asim Munir. Despite these challenges, both sides have emphasized that their relationship remains fundamentally strong. Gor described India and the US as “real friends” capable of disagreements but committed to resolving differences over time.

Key Areas of Discussion

1. Trade:
The phone call was a rare direct engagement between the two foreign ministers on trade, aimed at reviving the stalled bilateral agreement. While no official Indian readout outlined specific concessions, both sides confirmed their intent to maintain ongoing dialogue and work toward mutually acceptable solutions. The discussions also reflected India’s pushback against US demands that it viewed as unfavourable or potentially compromising national interests, particularly regarding energy and tariff matters.

2. Critical Minerals and Supply Chains:
A major point of convergence in the talks was critical minerals, a sector in which the US has expressed concern over China’s dominance. Rubio highlighted the importance of diversifying supply chains to reduce vulnerability and emphasized opportunities for cooperation with India. Jaishankar reiterated that strengthening critical mineral supply chains would directly support India’s manufacturing capabilities, particularly in electronics and high-tech sectors.

3. Nuclear Cooperation:
The enactment of India’s SHANTI law received US recognition, with Rubio expressing interest in leveraging this development to expand civil nuclear collaboration. The discussions likely explored avenues for American investment in Indian nuclear projects, supporting shared goals of energy security and clean energy development.

4. Defence and Security:
Both ministers reaffirmed their commitment to a free and open Indo-Pacific, underscoring shared concerns about regional stability. While the public record does not detail specific security arrangements, the engagement reflects ongoing efforts to maintain strategic alignment despite trade tensions.

5. Future Engagements:
Both sides agreed to maintain continuous communication on trade and other bilateral matters. A follow-up meeting is being planned next month, alongside India’s anticipated inclusion in Pax Silica, the US initiative for secure semiconductor and AI technology supply chains. This signals a potential broadening of strategic and economic cooperation beyond trade alone.

Significance

The conversation between Jaishankar and Rubio represents a careful recalibration of India-US relations, aiming to bridge gaps created by recent trade disputes and geopolitical sensitivities. By combining discussions on trade, critical minerals, nuclear energy, and defence, both nations signaled a willingness to seek convergence on multiple fronts, even as disagreements persist in specific areas.

Experts note that such engagements are crucial for India to protect its economic interests while advancing strategic partnerships, particularly in the context of global supply chain vulnerabilities and shifting geopolitical dynamics. For the US, engaging India is equally important to counterbalance China’s influence in critical sectors and strengthen partnerships in the Indo-Pacific.

While the details of the trade negotiations remain confidential, the positive tone of the discussion and the planned follow-ups suggest that both sides are committed to sustaining dialogue and exploring practical pathways to a mutually beneficial agreement.