Amidst escalating trade tensions and a recent H-1B visa fee hike that has impacted India's tech sector, U.S. Secretary of State Marco Rubio met with Indian External Affairs Minister S. Jaishankar in New York on Monday. The meeting, which took place on the sidelines of the United Nations General Assembly (UNGA), was their first in-person engagement since Washington imposed steep tariffs on key Indian exports over New Delhi's continued purchases of Russian oil. Despite these challenges, both leaders emphasized the critical importance of the U.S.-India relationship and the need for sustained engagement.

Following the meeting, Rubio reiterated that India continues to be a "critical" partner for Washington. In an official readout from the meeting, Rubio stated that ties with New Delhi are of "critical importance" to the U.S.. He also expressed his appreciation for the Indian government's continued engagement on a number of issues including trade, defense, energy, pharmaceuticals, and critical minerals.

Jaishankar echoed the need for persistence in the relationship. Taking to X, he noted that the meeting "covered a range of bilateral and international issues of current concern" and that both sides "agreed on the importance of sustained engagement to progress on priority areas". He affirmed that they would remain in contact.

The meeting aimed to stabilize India-U.S. ties, which have been strained by several factors. These include President Trump's decision to increase tariffs on India as a penalty for New Delhi's purchase of Russian oil and the recent unveiling of a hefty USD 100,000 fee for new H-1B visas, a move that has rattled India's tech sector. The US levied 50% tariffs on India, including a 25% charge for Russian oil purchases.

Despite the setbacks, both Washington and New Delhi have maintained diplomatic contact. Rubio and Jaishankar last met in July at a Quad foreign ministers' gathering with Japan and Australia, countries that share concerns about China's growing influence. Monday's meeting was intended to underline that cooperation remains intact.

The talks in New York occurred as Indian and U.S. trade negotiators prepared for their next round of discussions. Commerce and Industry Minister Piyush Goyal is also in the U.S. this week and met with trade representative Jamieson Greer in New York. These negotiations follow a shift in tone from President Trump, who recently indicated his administration was working to resolve key trade irritants with India.

The U.S. State Department reported that the meeting focused on various aspects of India-U.S. bilateral ties, including trade, defense, energy, pharmaceuticals, and critical minerals. Both countries have expressed a commitment to promote a free and open Indo-Pacific region, including through the Quad.

Analysts say the new H-1B visa fee could sharply increase costs for Indian IT service providers, who rely heavily on the program. India is by far the biggest user of H-1B visas, securing 71 per cent of approvals last year, compared with just under 12 per cent for China.