New Delhi: India and the United States are making significant progress toward finalising the first phase of their bilateral trade agreement, with officials indicating that negotiations are approaching conclusion. The upcoming tranche is expected to address the steep tariff barriers imposed on Indian exports in recent years, including the 50 per cent duties introduced during the Trump administration and the additional 25 per cent levy linked to India’s purchase of Russian crude oil.
According to senior officials, the agreement is structured in multiple stages. The initial package focuses on reciprocal tariffs and has advanced to a stage where both sides anticipate closure soon. The official noted that resolving the 25 per cent penalty on Indian goods is essential for the pact to deliver meaningful results, adding that an announcement will be made once both governments settle on a suitable date.
India and the US have held six rounds of discussions so far, with both countries aiming to conclude the first phase by the fall of 2025. A high-level Indian delegation led by Commerce Secretary Rajesh Agrawal visited Washington in October for the latest round of talks.
In a parallel development, India’s state-run oil companies have signed a one-year agreement to import LPG from the US starting in 2026. Although not formally part of the trade package, the arrangement aligns with broader efforts to balance bilateral trade, which has been a point of friction given India’s trade surplus with the US.
Negotiations have gained urgency as both sides work to ease tensions that escalated after Washington imposed higher duties on Indian products. The broader agreement aims to expand bilateral trade to 500 billion dollars by 2030, up from 191 billion dollars currently. The US continues to seek greater access for products such as nuts, apples, ethanol and genetically modified commodities.
The US remained India’s top trading partner in 2024–25, with trade valued at 131.84 billion dollars. However, India’s exports to the US saw a notable decline in September due to the elevated tariff regime, even as imports from the US rose.
