India and the United States have achieved "very significant progress" in their ongoing trade negotiations and are approaching a positive resolution, according to government sources.

This development comes as India has also recently concluded a free trade agreement with the European Union, a deal hailed as the "mother of all deals" by European Commission President Ursula von der Leyen. The EU-India agreement, finalized after nearly two decades of negotiations, is expected to significantly boost trade between the two regions. It aims to reduce tariffs on nearly 97% of goods imported to India from Europe and is projected to double EU exports to India by 2032. The agreement will ease market access for European products like cars and wine, while also benefiting Indian exports such as textiles, gems, and pharmaceuticals.

India's recent trade activities reflect its strategy to diversify its trading partners amid global economic shifts. The completion of the India-EU trade deal was accelerated in light of increasing trade tensions with the United States and concerns over China's dominance in global manufacturing.

However, the trade negotiations between India and the United States have faced some hurdles. Washington has maintained elevated tariffs on Indian exports linked to energy purchases from Russia. A leaked audio revealed that US Senator Ted Cruz stated that the White House leadership, under Donald Trump, JD Vance, and Peter Navarro, has stalled progress on a trade agreement with India. These internal challenges within the US government have become a significant obstacle to advancing bilateral trade ties.

Despite these challenges, the recent reports suggest that both countries are committed to resolving their differences and finalizing a trade pact. The details of the potential agreement and the specific areas of progress have not been disclosed.

The completion of a trade agreement between India and the United States would not only strengthen the economic ties between the two countries but also send a positive signal to the global economy. As India continues to emerge as a major economic power, its trade relationships with key partners like the United States and the European Union will play a crucial role in shaping the future of global trade.