Washington, April 24 : A deepening â??lack of mutual trustâ?? has emerged as the biggest challenge in India-US ties, even as both sides continue to engage across strategic and economic fronts, speakers said at the Hudson Instituteâ??s New India Conference.

â??There is a big lack of mutual trust today. We need to build that trust once again,â?? Ram Madhav said, pointing to a sharp shift in perceptions compared to earlier phases of close political alignment.

The panel said the relationship, while resilient, is undergoing a difficult phase marked by misaligned expectations, policy uncertainty and slower momentum.

Elizabeth Threlkeld of the Stimson Centre said both sides often misread each otherâ??s constraints. â??Each side has a tendency to see the othersâ?? limits as choices, but their own limits as necessities,â?? she said, calling for a candid reassessment of shared interests.

She said rebuilding trust would require focusing on â??genuine mutual interestsâ?? and delivering practical outcomes that reduce friction in cooperation.

Kurt Campbell, former US Deputy Secretary of State, said the strain runs deeper than policy disagreements. â??This has caused a deep hurtâ?¦ a deep, profound hurt among Indian friends,â?? he said, adding that emotional and political factors are shaping perceptions on both sides.

Campbell said the relationship had advanced significantly over the past two decades, with an expectation it would become the â??dominant relationshipâ?? of the century, making the current phase more consequential.

The discussion also highlighted persistent friction in areas such as trade, defence cooperation and policy coordination, often slowed by bureaucratic processes and differing political systems.

At the same time, speakers stressed that engagement continues and opportunities remain, particularly in economic cooperation.

Madhav said India has shown flexibility on key issues, including tariffs and energy imports, and is moving ahead with a potential trade agreement despite domestic political pressures. â??That wouldnâ??t discourage usâ?¦ the government will go ahead,â?? he said.

He also emphasised the importance of re-engaging on initiatives such as the India-Middle East-Europe corridor and I2U2, which have seen uncertainty in recent months.

Speakers broadly agreed that the relationship requires sustained political attention and renewed alignment on priorities, even as global crises add pressure.

The New India Conference, held on April 23, brought together policymakers and experts to examine Indiaâ??s global trajectory and the future of US-India relations.

Over the past two decades, the partnership has expanded across defence, trade and technology, supported by strong diaspora ties. However, recent geopolitical shifts and policy divergences have exposed structural gaps, making trust-building a central task going forward.

/IANS