India expects to finalise a long-pending trade deal with the United States before the end of this year, with most major issues now resolved, trade secretary Rajesh Agarwal said on Friday.
The trade secretary also said negotiators from both sides are currently holding virtual discussions, and any remaining sticking points “could be addressed at the political level” if required.
He also confirmed that India and the European Union are in the “last and most difficult phase” of their free trade agreement (FTA) negotiations, signalling the complexity of closing a deal with the 27-member bloc.
The developments come just days after India’s Ambassador to the United States, Vinay Mohan Kwatra, met US Under Secretary of State Jacob S Helberg in Washington to advance talks on a mutually beneficial trade arrangement and cooperation in emerging technologies.
Congratulating Helberg on assuming the role of Under Secretary for Economic Growth, Energy, and Environment, Kwatra later shared details of their meeting on social media, writing: “Had a wide ranging conversation on our bilateral economic engagement agenda, including a mutually beneficial trade deal, strategic trade dialogue, and technology cooperation including AI.”
Helberg, now the 22nd Under Secretary of State for Economic Affairs, previously served as an Advisor to the Council of Economic Advisors at the White House. His engagement with Kwatra adds to a series of recent interactions between the Indian envoy and senior US officials and lawmakers.
However, the bilateral relationship has come under strain following the Trump administration’s decision to impose a 50 per cent tariff on Indian goods, along with an additional 25 per cent levy in response to India’s purchase of Russian crude oil. New Delhi has criticised the move as "unfair, unjustified and unreasonable", stressing that its energy choices are dictated by affordability and national interest.
Despite these challenges, an Indian official recently said that the first phase of the proposed India–US bilateral trade agreement (BTA) is “nearing closure”, with expectations that it will not only address the high tariffs on Indian exports but also respond to US market-access concerns.
According to Commerce Ministry data, India’s merchandise exports to the US fell 11.93 per cent to USD 5.46 billion in September due to the tariff impact, even as imports from the US rose 11.78 per cent to USD 3.98 billion.
Still, the US remains India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade touching USD 131.84 billion — including USD 86.5 billion in exports — accounting for about 18 per cent of India’s total goods exports, 6.22 per cent of imports, and 10.73 per cent of overall merchandise trade.