Trade negotiations between India and the United States are progressing in a positive and cordial environment, according to officials at the Commerce Ministry. This comes as representatives from New Delhi and Washington engage in "robust negotiations" and remain in regular contact.
These discussions are part of India's broader engagement in trade talks with multiple partners, including Canada, Chile, Israel, and the Gulf Cooperation Council (GCC) countries. Indian officials have emphasized that while they are open to expanding trade engagements, they are not rushing to conclude agreements and are carefully examining each potential free trade agreement based on its own merits. "We are never in a hurry and move at our own pace, without compromising our interests," an official stated.
The India-US trade talks have been ongoing since early 2025 but faced a setback when the US imposed tariffs, as high as 50%, on Indian imports in August. Negotiations resumed in October after a brief pause.
Recently, there have been signals of potential progress. US Treasury Secretary Scott Bessent indicated that half of the tariffs imposed on India (25% levies) could be waived, as India has significantly reduced its import of Russian crude oil.
Furthermore, government sources reported that negotiators from both countries have completed all the technical work and paperwork required for a proposed bilateral trade deal. This suggests that negotiations have effectively concluded at the working level and have moved to the political leadership for final decisions. According to these sources, all outstanding issues across sectors have been resolved, and both sides are awaiting leadership-level approval to move forward with the agreement. A senior official affirmed that "no strand of the trade negotiations is left to be ironed out" and that the negotiators have completed their mandate.
These trade talks aim to address long-standing concerns related to tariffs, non-tariff barriers, market access, and regulatory cooperation. Multiple rounds of discussions involving senior commerce officials and trade representatives have taken place, reflecting renewed momentum in the economic engagement between the two countries.
In addition to the progress with the US, India has also concluded negotiations on a free trade agreement with the European Union, which includes a comprehensive mobility framework to facilitate the temporary entry and stay of Indian professionals across the 27-nation bloc. The European Commission estimates that the EU's goods exports to India will double by 2032 because of this deal.
