External Affairs Minister S Jaishankar said on Monday that the United States remains a critical economic and strategic partner for India and emphasised that New Delhi simultaneously has improved ties with China, Russia, Europe and the Gulf as part of a “multi-alignment” approach.Speaking at the Kautilya Economic Conclave, Jaishankar said Washington is India’s principal strategic partner and a major economic, trade and defence partner.&nbsp;&nbsp;“Where the US is concerned, it is one of our principal strategic partners. It is our largest economic account, it’s our biggest trade account, and it’s a very major critical defence partner...In an age of flux, how do you deal with the US? How do you deal with the rise of China? How do you respond to a much more stable traditional relationship with Russia? And how do you explore new possibilities with Europe, where we have concluded an FTA with Europe and the UK as well?” the external affairs minister said.&nbsp;&nbsp;

<blockquote class="twitter-tweet">#WATCH | Delhi: At the Kautilya Conclave, External Affairs Minister Dr S. Jaishankar says, &quot;Where the US is concerned, it is one of our principal strategic partners. It is our largest economic account, it's our biggest trade account, and it's a very major critical defence partner...in an age of flux, how do you deal with the US? How do you deal with the rise of China? How do you respond to a much more stable traditional relationship with Russia? And how do you explore new possibilities with Europe, where we have concluded an FTA with Europe and the UK as well?...&quot;&mdash; ANI (@ANI) <a href="https://x.com/ANI/status/2107101100075778262?ref_src=twsrc%5Etfw">October 5, 2026</a></blockquote>
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&nbsp;<h2>‘America deal can boost Indian economy,’ says Jaishankar</h2>&nbsp;The External Affairs Minister also said that India’s proposed trade deal with the United States could provide a significant boost to the economy by expanding market access and deepening ties with one of the world’s largest and most lucrative markets.&nbsp;Jaishankar described the India-US trade agreement under negotiation as a “big step with great possibilities”, alongside recently concluded trade agreements with the European Union, the UK and the European Free Trade Association (EFTA).&nbsp;“These are big steps with great possibilities which would have a beneficial impact on the economy,” he said, adding that the agreements would also help bring greater balance to India’s trade relationships.&nbsp;“We need to be very objective about where the problems are today in the trading system,” he said, adding that the US, as the world’s biggest economy and a major trading power, cannot be left out of any effort to reform the global trade system.&nbsp;Jaishankar further added that India’s trade strategy should focus not merely on reducing bilateral deficits but on addressing market-access restrictions that contribute to those deficits.&nbsp;The minister said that as per the “multi-alignment” approach, India seeks to advance multiple relationships based on their respective opportunities and challenges. “Every relationship is net-net a plus for us,” he said.<h2>‘Can’t say US is to blame for all trade problems’</h2>&nbsp;External Affairs Minister Jaishankar also cautioned against blaming Washington for all the problems facing global trade and said that several market distortions in the global trading system have emerged from sources other than the US and need to be assessed objectively.&nbsp;“We can’t say US is to blame for all the trade problems,” Jaishankar said.&nbsp;<h2>‘UN gridlocked, has become irrelevant in many cases’</h2>&nbsp;Foreign minister S Jaishankar reiterated the call for reform in the United Nations, saying the global body has become irrelevant in many cases.“Where the UN is concerned, I think it’s obvious to everybody by now that the UN is gridlocked. That if you look at the big issues of the day, whether you look at the conflict in the Gulf, whether you look at the conflict in Ukraine, whether you look at other issues in Africa, whether you look at COVID, actually, the United Nations has been largely irrelevant to the decision-making,” he said.&nbsp;About the UN Security Council, he said, there is a widely held view that the Security Council no longer represents the entirety of the global interest.The UN, he recalled, started with 51 members and now has grown almost four times.“If you have grown four times and you want to keep the old board of management, it is not going to work. It is common sense,” he said.&nbsp;“The UN has done a big service to the international community. Our job must be to fix the UN, not to work around the UN. But the UN itself has to help with that process,” he added.

External Affairs Minister S Jaishankar said that India’s proposed trade deal with the United States could provide a significant boost to the economy by expanding market access and deepening ties with one of the world’s largest and most lucrative markets.

External Affairs Minister S Jaishankar said on Monday that the United States remains a critical economic and strategic partner for India and emphasised that New Delhi simultaneously has improved ties with China, Russia, Europe and the Gulf as part of a “multi-alignment” approach. Speaking at the Kautilya Economic Conclave, Jaishankar said Washington is India’s principal strategic partner and a major economic, trade and defence partner. “Where the US is concerned, it is one of our principal strategic partners. It is our largest economic account, it’s our biggest trade account, and it’s a very major critical defence partner...In an age of flux, how do you deal with the US? How do you deal with the rise of China? How do you respond to a much more stable traditional relationship with Russia? And how do you explore new possibilities with Europe, where we have concluded an FTA with Europe and the UK as well?” the external affairs minister said.

External Affairs Minister S Jaishankar said that India’s proposed trade deal with the United States could provide a significant boost to the economy by expanding market access and deepening ties with one of the world’s largest and most lucrative markets.

‘US remains a critical economic and strategic partner for India’: Jaishankar

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong.&nbsp;Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported.&nbsp;Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.&nbsp;"I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows."<h3>Inflows of FDI</h3>Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested."&nbsp;She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)."&nbsp;Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses."&nbsp;Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment.&nbsp;Also read: <a href="https://www.wionews.com/world/pm-modi-thanks-trump-as-us-tariffs-on-indian-exports-come-down-from-50-to-18-1770057507354">PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%</a>

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong. Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported. Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds. "I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows." Inflows of FDI Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested." She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)." Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses." Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment. Also read: PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Is rupee making comeback? Economist sees support from India–US trade and portfolio inflows

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‘US remains a critical economic and strategic partner for India’: Jaishankar

Is rupee making comeback? Economist sees support from India–US trade, FDI