Most issues settled; India close to finalising trade deal with US, government official says
India and the United States are very close to finalising a bilateral trade agreement, with most major issues now under alignment, according to a senior Indian government official. While the two nations proceed toward an agreement, India remains adamant that it will not rush into a deal or accept terms under duress, as emphasised by Commerce and Industry Minister Piyush Goyal. One of the sticking points has been Washington’s 50% tariff on Indian goods—linked to India’s purchase of Russian oil and barriers faced by US goods entering India—which remains a backdrop to the talks. The pact aims to boost bilateral trade towards USD 500 billion by 2030, from around USD 191 billion currently. With legal language being drafted and convergence achieved on key modules, both sides express optimism about concluding the first phase by late 2025.
The Key points
- A senior Indian official said most conflicts have been resolved and a deal is now in sight.
- India emphasises it “will not do deals in a hurry” or under pressure, per Minister Goyal.
- The US has imposed a 50% tariff on many Indian exports, linking it to oil purchases from Russia.
- India and the US first set negotiating instructions for the bilateral trade agreement earlier this year.
- They have targeted the fall of 2025 to conclude the first tranche of the pact.
- Current bilateral trade is about USD 191 billion, with aims to more than double that by 2030.
- Indian exports to the US dropped nearly 12% in September, while imports rose about 11.8%.
- Non-tariff barriers and legal wording of the agreement remain among the few unresolved items.
- India is also diversifying its markets in response to high tariffs and trade uncertainties.
- The US remains India’s largest trading partner, underscoring the strategic value of the deal.
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