May 21, 2025
The first phase is expected to cover market access for industrial goods, select agricultural products, and non-tariff barriers like quality controls
Commerce Minister Piyush Goyal is in Washington to meet senior US trade officials and advance the negotiations
A broader second-stage deal, likely due between September and November, may coincide with President Trump’s anticipated visit to India
The final comprehensive agreement will depend on US congressional approval and is not expected until next year
India is in talks with the United States to finalise a three-stage trade agreement and hopes to reach an interim deal before July, according to officials familiar with the discussions. The urgency stems from the looming deadline of President Donald Trump’s reciprocal tariffs, which are scheduled to come into effect mid-year.
The interim agreement under consideration is likely to address key areas such as market access for industrial goods, select agricultural items, and some non-tariff barriers, particularly those involving quality control standards. Sources in New Delhi, who requested anonymity due to the sensitive nature of the discussions, noted that while talks are ongoing, it remains unclear whether the Trump administration has formally agreed to the phased approach.
Commerce Minister Piyush Goyal is currently in Washington on a four-day visit that ends on Tuesday. During this trip, he is expected to meet with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to push forward the negotiations.
Neither India’s Ministry of Commerce and Industry nor the Ministry of External Affairs has issued a formal statement on the matter. Similarly, the US Trade Representative and the Commerce Department have not responded to requests for comment.
According to Indian officials, the second phase of the deal is expected between September and November and will likely cover a broader set of issues. This includes the 19 focus areas laid out in the terms of reference agreed upon by both countries in April. This stage of the deal may coincide with President Trump’s planned visit to India for the Quad leaders’ summit.
The third and final leg of the trade agreement is envisioned as a comprehensive pact that would require approval from the US Congress. Indian officials anticipate this final phase will not be completed before next year.
India was among the first countries to initiate trade talks with the US following Prime Minister Narendra Modi’s visit to the White House in February, shortly after President Trump assumed office. Both leaders had expressed a commitment to boosting bilateral trade and aimed to complete the first tranche of the deal by autumn.
Since then, Indian officials have signalled a willingness to pursue “early mutual wins” ahead of the broader agreement. However, the atmosphere has recently become strained. New Delhi has taken a firmer stance, threatening retaliatory tariffs on American products.
Meanwhile, President Trump has asserted that India agreed to reduce tariffs on US goods to zero, although he has downplayed the urgency of reaching a deal. His claims that he played a role in brokering a ceasefire between India and Pakistan after four days of military tension have also sparked frustration in New Delhi. Indian officials have firmly denied these assertions, maintaining that no external mediation occurred.
Source: Economic Times