New Delhi: A four-day series of closed-door negotiations between India and the United States over a potential interim trade agreement concluded in New Delhi on Tuesday, with significant progress reported. The deal, expected to be signed as early as this month, could serve as a key stepping stone toward the ambitious goal of raising bilateral trade from $190 billion to $500 billion by 2030.
Led by top officials from the Office of the US Trade Representative and India’s Commerce Ministry, the discussions focused on expanding market access for both agricultural and industrial products, reducing tariffs, and removing non-tariff barriers. The Indian team was headed by Rajesh Agrawal, Additional Secretary in the Ministry of Commerce.
A government source described the meetings as “productive,” stating that progress had been made toward crafting a “mutually beneficial and balanced agreement,” including some early wins for both sides.
Key Focus Areas
One of the central themes of the discussions was enhancing digital trade. The delegations explored initiatives to improve customs processes and trade facilitation, with the goal of including these in a broader, long-term trade pact.
India resisted US pressure to open up its domestic markets to wheat, dairy, and corn imports, instead offering to reduce tariffs on high-value US agricultural exports such as almonds, pistachios, and walnuts.
India also pressed for the removal of a 10% baseline tariff imposed during the Trump administration under a national security justification. However, the US negotiators rejected the request, citing similar conditions even in trade agreements with allies like the UK.
On the industrial front, India requested exemption from a 50% US tariff on steel exports. In return, India expressed willingness to expand its imports of American energy products—such as liquefied natural gas (LNG), crude oil, and coal—as well as defense equipment.
Deal Expected This Month?
Both nations are aiming to finalize the interim deal in June, potentially during the G7 Summit in Canada, where Prime Minister Narendra Modi and former US President Donald Trump are expected to meet. Trump, currently facing mounting criticism over aggressive trade tactics, is reportedly eager to seal the agreement before the expiration of his 90-day pause on reciprocal tariffs—a move that includes a looming 26% tariff on key Indian exports like rice, textiles, shrimp, and footwear.
While trade ministry officials in New Delhi focused on wrapping up the US deal, Commerce Minister Piyush Goyal was in Switzerland working on a separate trade pact with the European Union—India’s second-largest trading partner.
Speaking about the US deal, Goyal emphasized India’s readiness to move forward by initially resolving less complex issues. More difficult points will be addressed in a second phase of negotiations, with the next tranche of the trade agreement expected by September or October.
What’s Next
As discussions accelerate, the interim trade deal is being seen as a crucial diplomatic and economic step for both nations. For India, it signals growing engagement with major global economies. For the US, it offers a way to bolster trade relationships with strategic partners amid a shifting geopolitical landscape.
