Ongoing discussions between India and the United States aim to finalize a comprehensive trade agreement, according to India’s Ministry of External Affairs (MEA). The latest round of negotiations focuses on resolving outstanding issues, particularly around tariffs, as both nations seek to expand bilateral trade ties.
This development follows comments from US President Donald Trump, who stated that Washington is “very close” to finalizing a trade pact with India. MEA spokesperson Randhir Jaiswal confirmed on Thursday that negotiators from both countries remain in regular contact and are working to settle key matters. The primary goal is to ensure that tariffs on various goods remain below the 20% threshold.
President Trump emphasized that the agreement would create new opportunities for American companies in the Indian market, much like the recent trade arrangement between the US and Indonesia. Washington has already sent notifications to several countries about reciprocal tariffs set to take effect on August 1, unless bilateral agreements are reached.
New Delhi hopes to avoid these additional tariffs through a successful deal but remains firm about not rushing into any agreement. Commerce Minister Piyush Goyal previously stated that India would only finalize the trade pact when all terms are thoroughly negotiated and aligned with the country’s interests.
An Indian commerce delegation is currently in Washington for another round of talks. India is particularly concerned about US demands for reduced tariffs on agricultural and dairy products. Historically, India has not granted dairy-related duty concessions in any of its trade agreements, and it maintains that stance in the current negotiations.
In addition to resisting concessions in the dairy sector, India is pushing for the removal of a 26% additional tariff. The Indian side is also advocating for lower tariffs on steel and aluminium—currently at 50%—and automobiles, which face a 25% duty.
The US had previously announced increased tariffs on various countries, including India, on April 2. Implementation was postponed to July 9 and later extended to August 1.
Meanwhile, India’s talks with the European Union for a free trade agreement are also moving forward. The 12th round of India-EU discussions concluded in Brussels from July 7 to 11, with the next meeting set for September in New Delhi.
