India and the United States are “very close” to finalising the framework for their proposed bilateral trade agreement, Commerce Secretary Rajesh Agrawal said on Monday, underlining that negotiations between the two sides are progressing actively.

The two countries are engaged in parallel discussions — one focused on a framework trade deal aimed at addressing high tariffs, and the other on a comprehensive bilateral trade agreement (BTA).

The new US Deputy Trade Representative, Rick Switzer, visited India last week for trade talks with Agrawal. During the visit, both sides reviewed bilateral trade relations and assessed the progress of negotiations on the framework deal as well as the comprehensive BTA.

“We are very close on the framework deal, which we feel can be done in a short period of time. But I would not like to put a time period on that,” Agrawal told reporters here.

Responding to a query on whether more formal rounds would be held for the BTA, Agrawal said talks at the final stage generally do not require such rounds. He noted that while there may not be a formal round, both physical and virtual meetings would take place as the negotiations approach completion.

“So, we are moving in that zone, and we are working tirelessly to see as fast as we can,” he added.

Referring to the ongoing talks with New Zealand, the commerce secretary said once “we are in a zone”, where only a few issues or areas remain to be addressed, formal rounds are no longer necessary. With New Zealand, “we are moving towards a closure”, he said, adding that discussions are taking place on a daily basis.

“Last stage (talks) are like the most difficult things where maybe the principals need to take a call at the secretary or minister level,” Agrawal pointed out.

On negotiations with the European Union, he said, “We are narrowing down the differences”. “There is a set of differences on the table where we are not able to agree...we are virtually engaged...These discussions are (happening) on a regular basis,” he said.

The talks have gained urgency as the Trump administration has imposed steep 50 per cent tariffs on Indian goods entering the US market. The outcome of the negotiations is also expected to have a positive impact on the rupee, which has recently fallen to record lows and breached the psychologically significant 90-to-a-dollar level.

Indian industry and exporters are keenly awaiting the conclusion of the negotiations and the announcement of a deal, as high import duties have adversely affected shipments to the US. While exporters are exploring alternative markets to protect margins, the US remains a crucial destination, accounting for around 18 per cent of India’s total exports.

Initially, the US imposed a 25 per cent duty on Indian goods citing concerns over the trade deficit, which stood at about USD 46 billion in 2024–25. This was followed by an additional 25 per cent penalty on India for purchasing Russian crude.

India has maintained that resolving these tariffs would be central to firming up the first phase of the trade deal. Under the proposed pact, the US is seeking duty concessions on agricultural products such as almonds, corn and apples, as well as on industrial goods. India, however, has strongly opposed any concessions in the agriculture and dairy sectors, reiterating that it will not compromise the interests of farmers and MSMEs.