Mumbai, January 22, 2026: US President Donald Trump continues to make headlines from the World Economic Forum in Davos, Switzerland. In fresh remarks to Indian media, he praised Prime Minister Narendra Modi as a “fantastic man” and “friend,” while expressing confidence in a positive bilateral trade agreement between the US and India.
Trump made these comments on the sidelines of Davos events on January 21, responding directly to a question from an Indian journalist. He said, “I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine. We are going to have a good deal.” This comes amid ongoing negotiations that started in February 2025, with both sides aiming to push bilateral trade beyond $500 billion by 2030.
Trump’s Optimism on India-US Ties
The personal rapport between Trump and Modi has been evident in past interactions, and it appears to support forward movement on trade. Trump highlighted the talks as progressing well, even as challenges remain. The US has imposed high tariffs (up to 50%) on some Indian goods, and India continues to protect key sectors like agriculture and domestic industries.
Despite these hurdles, Trump’s tone was upbeat, suggesting a breakthrough could be near. This aligns with statements from US officials who have noted commitment to resolving differences.
Broader Davos Context
Trump’s Davos visit also focused on other global issues. He stepped back from earlier tariff threats on European NATO nations tied to Greenland discussions, announcing a “framework” deal instead of force or penalties. This eased some market tensions, helping global sentiment and contributing to a modest rupee recovery against the dollar.
In a separate White House briefing marking one year of his second term (on January 20), Trump highlighted domestic achievements like lower gasoline prices and immigration actions. He also took credit for preventing escalation in past India-Pakistan tensions.
Impact on Indian Markets and Investors
For Mumbai traders and investors, Trump’s positive signals on India-US trade provided some relief after recent volatility. The rupee saw slight gains following his Greenland tariff rollback, while equity markets trimmed earlier losses but held support from domestic buying.
A stronger trade pact could open doors for Indian exports in key areas and attract more US investment. However, persistent high tariffs and negotiation sticking points mean outcomes remain uncertain.
Indian officials have maintained that any deal must safeguard national interests. With Trump’s praise for Modi, the personal channel could help bridge gaps.
What to Watch Next
Keep an eye on follow-up statements from both sides as Davos wraps up. Any concrete trade updates or Modi-Trump interactions could influence markets. For now, Trump’s comments reinforce optimism in bilateral relations despite global complexities.
As always, track reliable sources like official statements or financial news for the latest developments. In Mumbai, where global cues often move Dalal Street, these signals from Davos add an interesting layer to the current trading environment. Stay informed!