India and the United States are actively engaged in discussions to finalize a bilateral trade agreement, with both sides expressing optimism about the prospect of a deal. Commerce Secretary Rajesh Agrawal stated on Thursday that the first tranche of the agreement is "very near," but stopped short of providing a specific timeline for its completion. According to Agrawal, negotiations between the two countries have remained ongoing, with teams engaging virtually to address pending issues.

In the last week of December 2025, a virtual meeting took place between Commerce and Industry Minister Piyush Goyal and United States Trade Representative Jamieson Greer, further highlighting the continued high-level engagement between the two countries on trade issues. Prior to this, a U.S. delegation led by Ambassador to India, Sergio Gor, and Deputy USTR, Rick Switzer, met with Minister Goyal and Commerce Secretary Agrawal to advance the negotiations.

Despite the ongoing discussions, no firm deadline has been set for the agreement, with officials emphasizing that it will be finalized when both parties are fully prepared.

The United States has imposed a 50% tariff on several Indian goods, including a 25% duty on India's purchases of Russian oil. These tariffs have added complexity to the discussions. India's exports to the U.S. are still recording positive growth, reflecting resilience in bilateral trade flows despite the elevated tariff levels. In December 2025, India's merchandise exports to the U.S. reached a five-month high of $7.01 billion, up from $6.89 billion in December 2024.

Ambassador Sergio Gor affirmed the U.S.'s commitment to strengthening strategic ties with India. He conveyed President Trump's best wishes to Prime Minister Modi, emphasizing the strong relationship between the two leaders. Gor stated that the U.S. and India are bound by shared interests and a relationship anchored at the highest levels.

Both countries initially aimed to complete the first tranche of the bilateral trade agreement by the fall of 2025. However, shifts in the U.S. trade policy environment and the imposition of tariffs led to a reassessment of those timelines. The proposed bilateral trade agreement aims to more than double bilateral trade from the existing $191 billion to $500 billion by 2030.

India is also closely monitoring potential U.S. sanctions on Iran to formulate its response. India's trade with Iran is primarily focused on food products and pharmaceuticals.

Despite the complexities and challenges, both India and the U.S. remain committed to finalizing a trade deal that will strengthen economic ties between the two nations.