September 10, 2025
Recent public exchanges between the two leaders reflect an easing in diplomatic friction that had risen earlier
President Trump said he is pleased with continued negotiations and looks forward to concluding them, while PM Modi reiterated confidence in unlocking the potential of India-US partnership
The first tranche agreement is not expected to cover all outstanding issues but serves as a critical milestone
While specifics of what the first tranche will include are still being worked out, the timeline reflects both sides’ desire to make measurable progress ahead of global market uncertainties and domestic economic pressures
India’s Commerce & Industry Minister, Piyush Goyal, said that the first portion (tranche) of a comprehensive trade agreement between India and the United States is likely to be finalised by November 2025. This comes after directives made in February 2025 by Prime Minister Narendra Modi and President Donald Trump, asking that their respective ministers ensure the agreement’s first phase is completed by then.
Goyal, speaking to the media in Bihar, noted that since March 2025, negotiations have been conducted in a “very good environment,” with both sides indicating satisfaction over the progress to date. He said that both governments have been committed to making “a good agreement,” with focused attention on resolving trade barriers.
Recent public exchanges between the two leaders reflect an easing in diplomatic friction that had risen earlier, particularly after the US imposed steep tariffs of 50% on certain Indian goods. These included a 25% baseline tariff plus an additional 25% punitive tariff tied to India’s purchase of Russian oil. Following these tensions, both leaders expressed optimism on social media about the talks. President Trump said he is pleased with continued negotiations and looks forward to concluding them, while PM Modi reiterated confidence in unlocking the potential of India-US partnership.
The first tranche agreement is not expected to cover all outstanding issues but serves as a critical milestone. It could address select trade barriers, tariffs, and possibly begin to simplify rules of trade between the two countries. The speed and scope of this first part may set the tone for deeper negotiations down the road. While specifics of what the first tranche will include are still being worked out, the timeline reflects both sides’ desire to make measurable progress ahead of global market uncertainties and domestic economic pressures.
If concluded by November, the agreement may offer relief in sectors affected by US tariffs, boost confidence among exporters and importers, and strengthen bilateral economic ties. Observers will be watching how closely the agreement addresses contentious issues such as market access, regulatory standards, and trade in critical or sensitive goods.
Source: Moneycontrol