New Delhi: India and the United States are on the verge of concluding a significant bilateral trade agreement, with sources indicating that the deal could be finalised within the coming week. The breakthrough comes as the clock ticks down on a 90-day tariff reprieve announced by former US President Donald Trump — set to expire on July 9 — prompting a renewed urgency in trade negotiations.
According to senior officials, both nations have agreed on key concessions in sectors such as agriculture and automobiles. Rajesh Agarwal, Special Secretary in India’s Department of Commerce and currently leading a high-level delegation in Washington, confirmed that India would continue to safeguard its core agricultural interests, particularly regarding staples like rice, wheat, fruits, and millets.
On the US side, the Biden administration (carrying forward Trump’s pending frameworks) is poised to offer market access for Indian auto components, which would enjoy reduced tariffs under the new arrangement. In return, India will provide incentives for select American vehicles, including models from electric vehicle giant Tesla, and allow greater access for certain American auto parts and spares.
“These are sensitive areas for both economies, but we’ve found common ground,” said Agarwal, speaking to reporters during ongoing talks with officials from the United States Trade Representative (USTR) office.
The looming July 9 deadline, set by Trump as part of a previous executive order dubbed “Liberation Day,” has added significant pressure to seal deals. Trump had previously stated that countries failing to reach trade agreements with the US would face heightened tariffs. In a recent interview with Fox News, he warned that trade penalties would be reinstated if no deals materialised.
“We’ll look at how a country treats us — are they good, are they not so good — some countries we don’t care, we’ll just send a high number out,” Trump said in a taped segment aired Sunday.
US administration is under pressure, with only two of the proposed trade frameworks finalised so far. With dozens of negotiations still pending and only days left before the July 9 deadline, experts say that hopes of wrapping up all targeted deals are fading fast. This India-US deal, therefore, could serve as a crucial diplomatic and economic win for both sides amid a backdrop of growing global trade uncertainty.
While no formal announcement has been made, insiders suggest that a joint statement or declaration could come as early as next week, once final points are ironed out.
The talks reflect a growing strategic partnership between New Delhi and Washington, with both nations keen to deepen ties not just in defense and technology, but also in trade and economic cooperation. The upcoming deal is expected to address long-standing issues and open new avenues for investment, job creation, and technological collaboration.
Should the agreement go through as expected, it would mark the most comprehensive bilateral trade pact between the two democracies in recent years and a significant development in global trade realignment amid shifting geopolitical tides.
