India and the United States are accelerating efforts to finalise the first phase of their bilateral trade agreement, with both sides now aiming to conclude the deal by early July. A high-level delegation, led by Commerce and Industry Minister Piyush Goyal, is travelling to Washington in the coming weeks to lead the negotiations, sources told Business Today on Friday. The development marks a shift from the earlier plan, which targeted a broader agreement in the fall.
Sources indicated that though “the deadline is to seal the deal by FTA, both countries are hopeful that the deal could be executed well before time, around the first week of July”.
On April 2, Trump implemented a 26% discounted reciprocal tariff on India, which contrasts with India’s 52% tariff rate on goods made in the US.
On April 10, the United States temporarily halted imposing further tariffs on Indian exports for a period of 90 days, set to end on July 9. This decision was viewed as a positive gesture of goodwill and a step towards fostering progress in trade negotiations.
US President Donald Trump shared on Thursday that India has proposed a trade agreement with the United States that would involve “practically no tariffs” on a wide array of American products, reported Reuters.
Trump’s recent statements come after his previous comments on April 30, in which he mentioned that discussions with India regarding tariff matters were progressing positively and he was optimistic about finalizing a deal soon. During an event in Michigan, he stated, “The negotiations on tariffs with India are progressing well, and I believe we will reach a agreement in the near future.”
However, within hours, External Affairs Minister S Jaishankar confirmed that trade talks between India and the US are underway, adding that the process is far from being final.
Speaking on the sidelines of an event in New Delhi, Jaishankar said: “Between India and the US, trade talks have been going on, negotiations have been going on. The team is just going at it at this point… These are very complicated negotiations; they are very intricate. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; any trade deal has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature.”
During his visit to Qatar, Trump also asserted on Thursday that he played a crucial role in easing tensions between India and Pakistan. He mentioned that he had discussions with both nations on trade matters while speaking to US troops.
He said, “Let’s trade instead of going to war. And Pakistan was very happy with that, and India was very happy with that, and I think they’re on the way, you know, they have been fighting for about 1,000 years in all fairness…”
