Signs of Trouble? Jaishankar Flags H-1B and Trade Flux, US Lack of 'Empathy’ on India's Terror Concerns

New Delhi: In relatively restrained language, external affairs minister S. Jaishankar identified Washington's lack of “empathy” for India's terrorism concerns, the uncertainty surrounding US trade policy and growing restrictions on skilled-worker mobility as three issues that can have an impact on the bilateral relationship.

Asked at an Asia Society interaction in New York on Monday (September 28) what would put India-US ties on a better track, Jaishankar referred to India’s position over cross-border terrorism but without naming Pakistan. He stated that India had faced terrorism from “a neighbour” as part of a “deliberate, conscious policy” over many decades.

“What for us in India is particularly important is the issue of terrorism,” he said. “If something which matters so deeply to us, there isn't enough understanding or appreciation or empathy of that, I think that creates a problem too.”

“If one of my primary concerns is not fully appreciated by my partner, then clearly there is an impact of that on the relationship,” he added.

The remarks come against the backdrop of closer US engagement with Islamabad under President Donald Trump, particularly following Operation Sindoor, India’s four-day military confrontation with Pakistan in May 2025 after the Pahalgam terror attack.

Rather than being diplomatically isolated, as claimed by the Modi government, Pakistan's leadership has since emerged as a close interlocutor for Trump, including through its participation in the Board of Peace for implementing the Gaza ceasefire and its role in efforts to mediate between Tehran and Washington.

Trade

Jaishankar identified trade as another source of friction, saying India and the US had reached “more or less an understanding” on a trade agreement but that changes in the US tariff framework had complicated its conclusion.

“On the American side, reciprocal tariffs were struck down,” Jaishankar said. “So, there's now a new basis for tariff imposition, which is 301.”

“The 301 process is still in the works, it's still unfolding,” he said, raising the question of “at what point do you close out an agreement which is very, very far advanced?”

The Section 301 process has emerged as a fresh complication for the trade negotiations after the US shifted away from the reciprocal tariff framework when it was struck down by the Supreme Court in DC.

The US Trade Representative has initiated Section 301 investigations covering a range of trade practices, while India and the US have continued negotiations towards a trade agreement. India was slapped with the highest ‘reciprocal’ tariffs by the Trump administration at 50% last year.

Jaishankar said the trade negotiations had proved more complicated than initially expected because of the structural differences between the two economies, particularly India's large base of small agricultural producers and small factories. He said there was now broadly an understanding on the trade agreement, but the change in the US tariff regime had created a new complication.

Visas

Jaishankar also pointed to mobility, in an apparent reference to the growing political contest in the US over the H-1B visa programme, which is heavily used by Indian technology professionals.

“For many years, mobility was seen as an economic gain,” he said. “Now, today, the economics of mobility and the politics of mobility are at odds with each other, at least in some quarters.”

The Trump administration has imposed a $100,000 payment requirement for certain new H-1B workers entering the US and has moved to give greater weight to higher-paid positions in the selection process. The measures have been pushed alongside a broader political campaign against what anti-immigration activists describe as the misuse of the programme, while US technology companies have argued that access to skilled foreign workers remains important.

Jaishankar attributed the changing environment around mobility to the growing role of domestic politics and public opinion in foreign policy.

“Foreign policy or diplomacy today is not just something which is conducted by states or leaders or ministers or even by diplomats,” he said. “In a social media era, there is a very big public opinion factor which, particularly in democratic societies, makes itself felt.”

He said India nevertheless expected the relationship to move on an “upward trajectory”.

“But I have to be real about the issues that we confront,” Jaishankar said. “And to the extent we are able to move ahead on some of these issues, I think we'll have a better relationship.”

The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.