The long-awaited US-India trade agreement could be finalized within the next three to four months, according to a senior US official who said negotiations between the two countries have reached an advanced stage.
Speaking on the sidelines of the ASEAN Foreign Ministers’ meeting in Manila, the official said the agreement has effectively been completed and that the remaining steps are linked to internal US trade procedures rather than unresolved issues between Washington and New Delhi.
The official stated that the two sides already have a draft agreement prepared, with the completion of ongoing Section 301 trade investigations being the primary factor delaying the final announcement. Under US trade law, Section 301 allows authorities to investigate unfair trade practices and introduce tariffs or other measures if necessary.
The United States and India have been negotiating the bilateral trade agreement as part of efforts to increase market access, reduce trade barriers, and strengthen economic cooperation between the two countries. The proposed pact is expected to support greater trade flows and create new opportunities for businesses in both markets.
The US official added that one Section 301 investigation involving around 60 countries was expected to conclude soon. Once these reviews are completed, progress on multiple trade discussions, including those involving India, could move forward.
When asked about the expected timeline for completing the agreement, the official estimated that the process could take another three to four months.
The trade discussions come as the United States continues reviewing its broader tariff policies. Washington has already proposed tariffs of up to 12.5% on several countries, including India, over concerns related to goods linked to forced labor.
Meanwhile, another US trade decision involving generic pharmaceutical imports has raised concerns for India’s drug industry. President Donald Trump announced that imported generic medicines would remain tariff-free for two years starting August 1 before facing possible tariffs of 100% and later 200%.
The move could have a significant impact on India’s pharmaceutical exports, as the United States is one of the largest markets for Indian generic drugs. India exported approximately $9.7 billion worth of pharmaceuticals to the US in 2025, accounting for nearly 38% of its total pharmaceutical exports.
Despite challenges in certain sectors, the potential trade agreement signals continued efforts by both nations to deepen economic ties and expand cooperation across key industries.
