New Delhi is nearing the finish line to clinch a breakthrough bilateral trade deal with Washington.
New Delhi: The bilateral trade talks between India and the US are progressing well, and a US team is slated to visit New Delhi on June 5-6 to discuss it further. The India-US trade deal would mark a significant milestone in economic relations between the two big economies, potentially opening new avenues for bilateral commerce and investment.
In 2024-25, for the fourth consecutive year, the US was India's largest trading partner, with bilateral trade valued at $131.84 billion. India had a trade surplus of $41.18 billion in goods with the US in 2024-25.
According to Mark Linscott, former Assistant US Trade Representative (USTR) and current Senior Advisor at the US India Strategic Partnership Forum (USISPF), the much-anticipated interim trade deal between India and the United States is not just about resolving immediate tariff issues, it’s the first step toward a much broader, comprehensive agreement.
Talks have gained momentum ahead of a critical July 8 deadline, when the suspension period on India’s 26 per cent reciprocal tariffs is set to expire. “I think we are very close, perhaps a matter of weeks, if not even days,” Linscott told CNBC, pointing to substantial progress on both sides.
Both sides are aiming to close the deal by the last week of June. The breakthrough followed months of quiet shuttle diplomacy and two earlier rounds of in-person meetings led by Indian officials and one round of in-person discussion by a US delegation in March.
Speaking at the CII Annual Business Summit in New Delhi this week, Rajesh Agarwal, India’s chief negotiator and special secretary in the commerce ministry, gave a rare and wide-ranging public update on the trade talks, linking them to a shifting global landscape and growing disruptions in supply chains.
On the trade deal with the US, Agarwal said India is approaching it with a clear sense of complementary strengths. “Most of what we make, the US doesn’t. Most of what they make, we don’t. There’s very little overlap—this is a natural fit.”
He stressed that the decision to negotiate a bilateral trade agreement with the US was made well before Washington imposed reciprocal tariffs. “This was never just about tariffs or deficits. We saw a strategic opportunity for both sides. If done right, this can be a defining partnership in global trade.”
Indian Commerce Minister Piyush Goyal was in Washington earlier for talks with Howard Lutnick, the Commerce Secretary, who is part of the US team conducting trade talks with multiple partner countries, along with Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.
