India and the United States appear to be moving closer to finalizing a long-discussed trade agreement, according to fresh comments from senior officials. Kevin Hassett, Director of the National Economic Council under the Donald Trump administration, said in an interview that both sides were “very close” to sealing the deal, though the process has become increasingly complex because of India’s ongoing energy trade with Russia.
Hassett, speaking to CNBC, noted that discussions had progressed significantly in recent months. He mentioned that US diplomats and Indian representatives have held multiple high-level interactions and visits, keeping negotiations active. However, he emphasized that India’s continued purchase of Russian crude oil has added layers of diplomatic and economic difficulty, complicating Washington’s ability to move forward smoothly.
The US had earlier imposed steep tariffs on Indian exports. Former President Donald Trump enforced a 50% tariff, including 25% penal duties linked to India’s crude oil imports from Russia. US officials under his administration argued that India’s energy transactions were indirectly bolstering Russia’s military capabilities amid the conflict in Ukraine.
Despite these challenges, Hassett said both nations remain optimistic. He acknowledged that there are “many variables” influencing the India–US relationship, but reaffirmed that the countries maintain strong ties and are committed to navigating the issues together.
India and the US have already conducted six rounds of negotiations on the proposed trade pact since March. The goal is to craft a modern, mutually beneficial agreement that expands bilateral trade while addressing sensitive sectors.
On the Indian side, Commerce and Industry Minister Piyush Goyal struck an encouraging but firm tone. Speaking at an event in New Delhi, he said that India would share “good news” about the trade pact once it meets the benchmarks of being fair, equitable, and balanced. Goyal reiterated that India would only commit to a deal that safeguards the livelihood of farmers and fishermen—two communities deeply affected by changes in trade regulations.
Goyal underscored that any agreement must not compromise India’s economic security or policy autonomy. He emphasized that India is open to closer engagement with the US, but not at the cost of its vulnerable sectors.
As negotiations continue, officials on both sides remain hopeful that a breakthrough could come soon, provided the agreement respects shared strategic interests and economic realities.
