India has indicated that its trade negotiations with the United States are approaching a decisive stage, with government sources describing the discussions as having made very strong progress and moving close to a favorable conclusion. Officials emphasized that engagement with Washington continued actively even as India finalized political understandings related to its free trade agreement with the European Union.
According to sources, the conclusion of the India–EU agreement was not used as a bargaining tool in discussions with the United States. They clarified that the final phase of the EU negotiations did not involve any reference to the US and was pursued independently, based on its own objectives and timeline. This, they said, reflects India’s broader approach of advancing trade relationships on parallel tracks rather than linking one agreement to another.
At the same time, the government underlined the importance of the American market, calling it as important, if not more important, than other major trading partners. Officials confirmed that Indian and US negotiators remained in regular contact throughout the final stages of the EU talks, signalling that momentum on the US front has been maintained. New Delhi, they added, remains optimistic about achieving a positive outcome in the near term.
Sources framed India’s trade diplomacy as a response to evolving global conditions. With the traditional multilateral trading framework facing increasing strain, countries are turning more frequently toward bilateral and plurilateral arrangements to protect market access and supply chain stability. In this environment, India’s strategy is to build a network of agreements that provide certainty for exporters and investors, rather than relying on any single deal.
Officials also rejected the idea that India must choose between the EU and US markets. Instead, they stressed that growth in exports to both regions is seen as complementary, supporting domestic employment and investment. The EU agreement, they noted, reflects India’s preferred template for large markets, including early tariff benefits where feasible, provisions to tackle non-tariff barriers, and a framework that allows future reviews and expansion.
While details of the proposed India–US trade agreement were not disclosed, sources described the negotiations as intensive and focused, with remaining issues narrow enough to allow closure soon. The government’s messaging aims to reassure industry and investors that India’s trade policy is driven by long-term commercial interests, market access, and integration into global value chains rather than short-term political signaling.
