Chicago – November 11, 2025
India and the United States appear close to finalizing a long-discussed bilateral trade agreement, as both sides signal optimism after months of negotiations. Commerce and Industry Minister Piyush Goyal said on Tuesday that India seeks a “fair, equitable, and balanced deal”, stressing that New Delhi will not compromise on the interests of farmers, dairy producers, or workers.
Speaking at the Udyog Samagam 2025 conference, Goyal confirmed that five rounds of talks have concluded, with both nations aiming to seal the first phase of the pact by late 2025. “If it happens tomorrow, next month, or next year, we are ready,” he said, adding that India’s approach has been “WTO-compliant and cautious,” protecting sensitive sectors like agriculture and fisheries.
The proposed deal could more than double bilateral trade to $500 billion by 2030, from $191 billion at present. The U.S. is already India’s largest trading partner, with trade valued at $131.8 billion in 2024–25, accounting for nearly one-fifth of India’s exports.
In Washington, President Donald Trump echoed similar optimism, saying the U.S. was “pretty close” to reaching a “fair trade deal” and promising to lower tariffs on Indian goods, currently the world’s highest at 50%, including a 25% penalty on imports tied to India’s earlier purchases of Russian crude. Trump said India’s decision to scale back Russian oil imports had improved conditions for a tariff rollback.
Indian officials said no further negotiation rounds are needed and that they are awaiting a U.S. response to India’s proposal, which is now in the legal drafting stage. “We’ve been thorough and patient,” one official said, “keeping every sensitive sector in mind.”
The trade talks come amid Washington’s push to strengthen economic ties with New Delhi as part of its “China-plus-one” strategy, diversifying supply chains away from Beijing. Trade experts say India should aim for tariffs around 15%, similar to concessions received by Japan and the U.K., to remain competitive with Vietnam and ASEAN exporters.
India is also diversifying exports to offset U.S. tariffs, seeking new markets such as Russia for seafood and exploring energy cooperation with the U.S., including small modular reactor (SMR) technology.
Both sides see the deal as a potential turning point in bilateral relations strained by earlier U.S. duties. “We’re negotiating in good faith,” Goyal said, “but India will never compromise its people’s interests for any agreement.”
