Union Finance Minister Nirmala Sitharaman has expressed hope that India and the United States will conclude their proposed trade agreement at the earliest, saying a mutually beneficial deal would support bilateral commerce and global trade. Her remarks come amid signs of progress in negotiations between the two countries.
Speaking with foreign policy expert Michael Kugelman at the Atlantic Council on the sidelines of the annual meetings of the World Bank Group and the International Monetary Fund in Bangkok, Sitharaman said an early agreement would benefit both countries.
Commerce and Industry Minister Piyush Goyal has also expressed optimism about the negotiations. He recently said the first phase of the trade deal had been finalised and was undergoing legal drafting. However, he emphasised that India must secure favourable terms that give its exporters a competitive advantage in the US market.
US Ambassador to India Sergio Gor has also indicated progress, saying negotiations were moving at a rapid pace and that major issues had been addressed.
In February, India and the United States agreed on a framework for the proposed agreement. The US subsequently reduced the punitive tariff on most Indian goods from 50% to 18% in August 2025, according to the reported timeline.
The United States remains India’s largest goods export destination. During the first half of the current fiscal year, Indian merchandise exports to the American market increased 11% year-on-year to $50.8 billion.
However, uncertainty surrounding US trade policy continues to pose challenges. A new American law authorising President Donald Trump to impose tariffs of up to 100% on countries purchasing Russian oil has added to India’s concerns. New Delhi has maintained that protecting the energy security of its 1.4 billion people remains a priority.
Sitharaman also highlighted India’s economic resilience, noting that the country has maintained its position as the world’s fastest-growing major economy since 2021-22 despite global uncertainties.
The World Bank and the IMF recently raised their growth projections for India for the 2026-27 financial year to 7.1% and 7%, respectively, following stronger-than-expected growth of 7.8% in the April-June quarter.
The finance minister attributed part of this performance to sustained public investment in infrastructure. She said capital expenditure on roads, transport and other infrastructure generates a multiplier effect by improving connectivity, supporting businesses and encouraging economic activity.
The government has budgeted ₹12.22 trillion for central capital expenditure in FY27, compared with ₹3.36 trillion in FY20. Sitharaman also stressed that economic growth must be accompanied by inclusive development and fiscal discipline, ensuring that public resources reach vulnerable sections without excessive spending.
In addition to discussing India’s economic outlook, Sitharaman called on multilateral institutions such as the World Bank and the IMF to become more responsive to emerging global challenges. She said these organisations must adapt to 21st-century needs and provide faster assistance to countries facing severe balance-of-payments difficulties.
She also highlighted the growing importance of cross-border digital payments, stablecoins and central bank digital currencies, arguing that these developments require timely policy responses and stronger international coordination.
As India and the United States continue negotiations, an early trade agreement could provide greater certainty for exporters, improve market access and strengthen economic ties. However, the final outcome will depend on whether both countries can resolve outstanding differences and agree on terms that serve their respective economic interests.
