The much-anticipated trade agreement between India and the United States is reportedly on the brink of finalization, with sources suggesting it could be completed 'any day now'. According to a report quoting officials from India's Ministry of External Affairs, discussions between the two nations have advanced significantly, with only minor formalities remaining to be addressed.
Substantial Progress in Negotiations
Sources within the Ministry of External Affairs have informed ANI that negotiations for the India-US trade pact have made substantial progress. The agreement is described as being close to completion, with officials characterizing the remaining tasks as 'just the dotting of the Is and the crossing of the Ts'. The most recent round of talks has been particularly productive, reflecting steady momentum and constructive dialogue between the two sides.
Trump's Positive Outlook
US President Donald Trump has expressed optimism about the proposed bilateral trade agreement. Speaking at the 56th Annual Meeting of the World Economic Forum in Davos on January 21, Trump praised Indian Prime Minister Narendra Modi as a trusted friend and respected leader. In response to a query from Moneycontrol, Trump stated, 'I have great respect for your Prime Minister. He's a fantastic man and a friend of mine, and we are going to have a good deal.'
Ambitious Trade Targets
The India-US trade deal aims to more than double the current bilateral trade volume. From the existing level of approximately $191 billion, the agreement targets boosting two-way trade to $500 billion by 2030. Initial discussions on this landmark pact were announced during Prime Minister Modi's visit to Washington in February 2025.
Context of Recent Trade Developments
The progress on the India-US agreement comes just one day after India concluded negotiations with the European Union on a separate free trade agreement. The India-EU FTA has been described as the 'mother of all deals', and following its conclusion, India has shifted its focus toward finalizing the trade pact with the United States.
US Perspective on Tariffs and Trade
US Trade Representative Jamieson Greer has commented on the broader trade landscape, noting that India stands to gain significantly from the recently concluded India-EU FTA. In an interview with Fox News, Greer observed that the European Union is increasingly viewing India as an alternative market, especially given challenges in exporting large volumes to the United States.
Greer also addressed concerns regarding US tariffs linked to India's continued purchases of Russian crude oil. He acknowledged that India has made notable progress in reducing such imports and emphasized that Washington expects New Delhi to continue this gradual reduction. Greer remains in regular contact with his Indian counterparts, describing their engagement as constructive, though he noted challenges persist due to the price advantage of Russian oil.
Administrative Confirmations
Earlier indications from Commerce Secretary Rajesh Agrawal suggested that the long-awaited first phase of the bilateral trade agreement was approaching completion, though no specific date was provided. The sense of imminent finalization is now reinforced by the latest reports from MEA sources.
As both nations work to resolve remaining issues, the India-US trade deal represents a critical step in strengthening economic ties and achieving ambitious trade targets in the coming decade.
