India-US trade deal: The much-awaited trade deal between India and the US may be finalised ‘any day now’. A report quoting sources in the Ministry of External Affairs has said that discussions between the two sides are underway and significant progress has been made towards the goal of finalising a trade deal. US President Donald Trump has imposed a 50% tariff on India – among the highest in the world.The comments made to ANI come just a day after negotiations with the European Union on a free trade agreement were concluded. The India-EU FTA has been described as the “mother of all deals”. India has now turned its focus to bringing its trade pact with the United States to a conclusion.
The trade deal aims to more than double two way trade from the current level of $191 billion to $500 billion by 2030. Initial discussions on the agreement were announced during Prime Minister Modi’s visit to Washington in February 2025.
India-US Trade Deal: What’s the progress?
Sources in the Ministry of External Affairs told ANI that discussions on the India US agreement have advanced substantially. The agreement is close to completion and could be sealed at any time, with only minor formalities left to be addressed, according to an ANI report quoting the MEA officials.The report quoted the officials saying that the India-US trade deal could be ‘finalised any day now’. They went on to say that it is ‘just the dotting of the Is and the crossing of the Ts”.Sources quoted in the ANI report described the most recent round of talks between the two sides as particularly solid, reflecting steady momentum and constructive dialogue. The sense of progress was also echoed by US President Donald Trump during his visit to Davos on January 21, where he spoke positively about the proposed India0US Bilateral Trade Agreement and expressed confidence that both countries would reach a favourable outcome.Also Read | India-EU FTA: Can ‘mother of all trade deals’ offset impact of Trump’s tariffs? ExplainedSpeaking after his address at the 56th Annual Meeting of the World Economic Forum, Trump praised Prime Minister Narendra Modi as a trusted friend and respected leader, saying, “I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine, and we are going to have a good deal,” in response to a query from Moneycontrol.Earlier, Commerce Secretary Rajesh Agrawal had indicated that the long awaited first phase of the bilateral trade agreement was approaching completion, although he did not specify a date. Meanwhile, US Trade Representative Jamieson Greer has said that India stands to gain the most from the recently concluded India-EU FTA. Speaking in an interview with Fox News, Greer said the EU was increasingly looking to India as an alternative market, given its heavy reliance on trade and the challenges it faces in continuing to export large volumes to the United States.Addressing questions on US tariffs linked to India’s continued purchases of Russian crude, Greer said Washington expects New Delhi to gradually reduce such imports. He acknowledged that India had already made notable progress, adding that he remains in regular contact with his Indian counterpart and described their engagement as constructive. However, he said challenges remain due to the price advantage of Russian oil, and noted that tighter sanctions introduced by the US Treasury Department in recent weeks are expected to accelerate the process.