India and the United States are moving closer to finalizing a significant bilateral trade agreement, with the first phase expected to be completed before the end of 2025. Commerce Secretary Rajesh Agarwal made this announcement during the FICCI Annual General Meeting on Friday, November 28, 2025, expressing optimism about reaching a solution within the current calendar year.
Trade Negotiations Progress Despite Challenges
According to Agarwal's statements reported by ANI, trade discussions between the two economic powers have continued advancing despite recent shifts in global trade conditions. The Commerce Secretary emphasized that both countries remain committed to finding common ground, though he acknowledged the unpredictable nature of such negotiations.
"I think our expectations, we are very optimistic and very hopeful that we should find a solution within this calendar year," Agarwal stated during the meeting. His comments reflect the positive momentum in talks that have faced multiple obstacles due to changing geopolitical landscapes.
Geopolitical Changes Impact Timeline
The initial target for completing the first tranche of the India-US bilateral trade agreement was set for fall 2025, but global developments have altered these deadlines. Agarwal specifically pointed to significant changes in the global trade landscape, particularly the United States' implementation of reciprocal tariffs affecting all trading partners.
The Commerce Secretary explained that trade negotiations inherently face uncertainty, noting that "with any trade negotiations, the final deadlines cannot be because even if there is one sticking point or one sticking issue which is in the mind of even one of the partners, the trade deal may not meet that deadline."
Parallel Negotiations Underway
India and the United States are currently engaged in two separate but related negotiation tracks. The first involves a comprehensive Bilateral Trade Agreement (BTA), while the second focuses on an immediate Framework Trade Deal designed to address pressing concerns related to the Trump tariffs.
Agarwal revealed that the framework discussions have reached an advanced stage, with negotiators making substantial progress toward an agreement. "We are close, we have tried to iron out most of the issues. Now it is only matter of time when this decision has to be taken, that when the two countries have to find the right landing zone to announce it," he commented.
The Commerce Secretary also addressed the broader BTA negotiations, stating that "I think we need to find pathway for complete elimination of reciprocal tariff in our process of doing (full) BTA. So I think that will take a bit of time, and we'll not hurry up those we are working on various aspects of BTA."
Despite the challenges posed by the 50% tariffs imposed by US President Donald Trump, both nations continue their negotiations. Agarwal confirmed that India has reached a critical stage where a trade deal could be achieved in a very short timeframe, signaling potential breakthrough in the long-standing trade discussions between the world's largest democracies.
