"Glad to meet [Rubio] this morning in Kuala Lumpur. Appreciated the discussion on our bilateral ties as well as regional and global issues," Jaishankar wrote on X.
The meeting took place amid the ongoing India-US talks on a trade agreement. Previously, India and the United States have set a target of completing the first phase of the trade agreement by the fall of 2025, with the aim of more than doubling bilateral trade to $500 billion by 2030 from the current $191 billion. However, in late August, an additional 25% tariff on imports from India, imposed by Trump, went into effect, bringing the total tariff rate to 50% - one of the highest rates set by Washington. This decision is linked to India's alleged sharp increase in oil purchases from Russia and the failure of trade negotiations.
While India has branded these actions as unfair and unjustified, it has also expressed its continued readiness for dialogue and a search for compromise. Indian Commerce Minister Piyush Goyal previously affirmed the country's "positive outlook" regarding its relations with Washington and its hope for a future agreement. Furthermore, Indian authorities have contended that Washington's criticism is selective, noting that both China and the European Union have carried on with similar purchases of Russian oil.
Even before the new US tariffs, Indian officials believed that the South Asian giant could resolve the issue of US tariffs as part of a future trade deal. The primary stumbling block remains the United States' demand for India to open its agricultural market to genetically modified crops. India has rejected this proposal, citing concerns over farmer welfare and food safety. Although both sides are seeking common ground, this remains a key point of contention.
According to Indian media reports, Indian Prime Minister Narendra Modi and US President Donald Trump were close to clinching an anticipated trade agreement on the sidelines of the ASEAN summit. However, Modi could not attend the summit, and instead, New Delhi is represented by the foreign minister.