Pankaj Tibrewal, Founder and Chief Investment Officer at Ikigai Asset Management, told CNBC-TV18 that the positive signaling is a “welcoming step” and could support market sentiment, though he cautioned that investors remain on edge until a concrete trade resolution is reached.
“Markets are confused right now, because every day some of the other comments have been coming in… Yesterday, we saw some comments about outsourcing being blocked, and then it was followed by Mr. Trump’s positive comments. So it’s a welcoming step, but we have to watch it out very carefully until the trade bill is signed again.”
The first signs of a thaw emerged after US President Donald Trump said he would “always be friends” with Prime Minister Narendra Modi and described India-US ties as a “special relationship.”
Hours later, Modi responded, saying he “deeply appreciates” and “fully reciprocates” Trump’s assessment, calling the partnership comprehensive and forward-looking. This exchange marked a shift after weeks of friction over tariffs, trade, and rhetoric.
Diplomats and foreign policy experts echoed similar sentiments but warned against reading too much into one exchange.
Former ambassador Venu Rajamony noted that while the messaging from both sides is constructive, Trump’s unpredictability means India must remain cautious. “President Trump remains highly unpredictable and to an extent unreliable, so we do not know what the future holds for us,” he added.
Harsh V Pant of Observer Research Foundation highlighted that Indian leaders have deliberately maintained a measured tone in recent months.
He added, “However, I don’t think there is any policy framework that is changing. Both sides will continue to negotiate the agreement. They were always doing it behind the closed doors. But his approach of megaphone diplomacy, approach of using public levers to push India that has not gone down very well and unless that tactic changes, the strategic outcome may also be contingent on some of these negativities that have been in the relationship over the last few weeks and months.”
Adding to this, former ambassador to Iran DP Srivastava pointed out that strategic compulsions, particularly the China factor, will ultimately push both India and the US towards reconciliation, even if immediate solutions remain elusive.
Former Foreign Secretary Harsh Vardhan Shringla underlined the importance of focusing on the broader strategic partnership, spanning trade, technology, and defence. For now, experts agree that while Modi and Trump’s positive remarks may calm nerves temporarily, the real test lies in whether tariff disputes and outsourcing concerns can be resolved in the coming weeks.
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