India and the United States are close to finalising the long-pending interim trade agreement, with only one per cent of negotiations left to be completed, US ambassador to India Sergio Gor said, expressing confidence that the deal could be signed in the coming weeks.
Speaking at the Indian Institute of Technology (IIT) Delhi during an event on the US-India TRUST Initiative, Gor said an American delegation led by the country's chief trade negotiator is expected to visit India from June 1 to 4 to continue negotiations. The visit follows talks held in Washington earlier this year between officials from the two countries.
“President Trump’s goal is to facilitate bilateral trade in a way in which it creates unprecedented opportunities for American businesses and workers. Just last week, India sent a team to Washington, DC, to finalise the last one per cent of that trade deal. Next week, we will welcome a US delegation here to continue those talks. We fully expect the new trade deal to be signed within the next few weeks and months,” Gor said.
“It is not just the volume, but it reflects deeper engagement and stronger economic integration,” he said.
India and the US agreed in February this year on a framework for an interim trade arrangement while reaffirming their commitment to negotiating a broader bilateral trade pact.
However, the momentum took a hit when the US Supreme Court scrapped the IEEPA tariffs, which President Trump used liberally throughout 2025 as a bargaining chip against trading partners. India was the worst hit with a 50 per cent tariff imposed on two-thirds of merchandise exports destined for the US.
With all countries now in the same boat as far as the US tariff is concerned, India has been looking to peg the deal in a manner that would put domestic players in an advantageous position vis-à-vis competing exporting economies.
The trade agreement also envisages greater economic co-operation, going beyond tariffs. Gor described India as one of America's key economic partners and said trade growth is being driven by innovation, investment and high-value sectors such as digital trade, advanced manufacturing, energy and emerging technologies.
Referring to the strategic importance of technology cooperation, the ambassador said, “Critical and emerging technologies are fundamentally reshaping the global balance of power. And I believe no partnership is better positioned to lead that charge than ours.”