New Delhi – Commerce Secretary Rajesh Agrawal announced on Friday that the India US trade deal is nearing completion, with both nations making substantial progress in negotiations. The two countries are “converging” on most issues, according to Agrawal, who hinted that a mutually beneficial agreement is imminent.
“I think we are very close,” Agrawal stated, referring to the Bilateral Trade Agreement proposed by Prime Minister Narendra Modi and President Donald Trump on February 13. His optimistic assessment of the India US trade deal comes after months of intensive negotiations between the economic powerhouses.
Timeline and Framework of Negotiations
The India US trade deal discussions were initiated through a joint statement on February 13, which indicated that the first tranche of the proposed BTA was expected to be concluded by fall—a period running from September through November in the United States. While Agrawal confirmed progress, he did not provide specific details about timelines or the exact nature of ongoing negotiations.
A government official with direct knowledge of the India US trade deal revealed that trade negotiators from both sides maintain regular contact to address issues pertaining to non-tariff barriers. The teams are currently finalizing the language of the draft agreement through continuous deliberations via virtual mode.
“The two sides are continuously deliberating through virtual mode,” the official said, adding that there are “no new issues” to pose any hurdle in the negotiations. This suggests the India US trade deal has moved beyond contentious points to focus on technical details.
Key Issues Being Addressed
The India US trade deal negotiations involve resolving complex matters related to non-tariff barriers, market access, and protection of domestic industries. According to officials, both sides remain engaged on the proposed bilateral trade agreement, with India committed to ensuring the accord protects the country’s farmers, fishermen, and micro, small and medium enterprises.
Trade negotiators have been working systematically to iron out language in the draft agreement, ensuring that the India US trade deal benefits both economies while addressing concerns raised by various stakeholders in each country.
Recent Diplomatic Engagement
Agrawal, who serves as the chief negotiator for the India US trade deal, concluded two days of discussions with American officials in mid-October. These talks were described as taking place in a cordial atmosphere that created pathways for constructive and mutually beneficial bilateral trade discussions.
The commerce secretary travelled to Washington on October 15 to join the Indian delegation for trade talks and returned on October 19. This face-to-face engagement has been crucial in advancing the India US trade deal toward completion.
Also Read: Trump Putin Sanctions: Critical 6-Month Timeline Showdown Over Russian Oil
Complementary Economic Relationship
Experts tracking the development of the India US trade deal noted that prospects for an agreement have strengthened following recent policy shifts. Indian refiners’ decision to reduce or stop Russian crude oil purchases following Washington’s sanctions on Russia’s Rosneft and Lukoil has removed a significant obstacle.
Analysts emphasize that both economies are complementary and represent natural trade partners requiring each other for reliable and robust supply chains. This mutual dependence strengthens the case for the India US trade deal and suggests long-term strategic benefits beyond immediate commercial gains.
Commerce Minister’s Cautious Approach
Commerce Minister Piyush Goyal, speaking at the Berlin Global Dialogue in Germany on Friday, confirmed that India is in active dialogue with both the European Union and the United States separately for bilateral trade deals. However, he emphasized India’s measured approach to the India US trade deal.
“We are in active dialogue with the EU. We are talking to the US, but we do not do deals in a hurry and we do not do deals with deadlines or with a gun to our head,” Goyal stated. His comments underscore India’s commitment to securing favorable terms rather than rushing to meet artificial deadlines.
Goyal was in Berlin to participate in the dialogue, a meeting of leaders and German businesses to discuss ways to boost bilateral trade and investments, demonstrating India’s multi-pronged approach to expanding trade relationships.
Previous Disruptions and Tariff Disputes
The India US trade deal talks faced significant disruption after the fifth round of negotiations in late August when President Trump imposed a 25% punitive levy over Russian oil purchases, in addition to a 25% reciprocal tariff on Indian goods. The combined 50% tariff made most Indian goods unviable in the US market.
New Delhi labelled these additional duties as “unfair, unjustified and unreasonable,” creating tension in the India US trade deal negotiations. However, both sides have maintained diplomatic engagement aimed at resolving the dispute, demonstrating commitment to achieving a comprehensive agreement.
Strategic Importance for Both Nations
The India US trade deal represents more than just commercial interests; it embodies a strategic partnership between two major democracies. With global supply chains undergoing restructuring and geopolitical tensions reshaping trade patterns, this agreement could establish a framework for long-term economic cooperation.
For India, the India US trade deal offers access to the world’s largest consumer market and opportunities for Indian businesses to expand their global footprint. For the United States, it provides access to India’s rapidly growing market and positions American companies to benefit from India’s economic expansion.
Path Forward
As negotiations enter their final stages, the India US trade deal appears poised for conclusion despite earlier setbacks. The absence of new contentious issues, combined with regular engagement between negotiators and political will at the highest levels, suggests that an announcement could be imminent.
The successful conclusion of the India US trade deal would mark a significant milestone in bilateral relations and could serve as a model for future trade agreements in an increasingly complex global trade environment. Both nations appear committed to achieving an outcome that balances economic interests with strategic objectives.
