India and US Near Finalizing First Phase of Trade Deal by July
India and the United States are on the verge of finalizing the first phase of their trade agreement before the end of July. Currently in Washington, Commerce and Industry Minister Piyush Goyal is leading discussions with American counterparts, signaling progress in negotiations.
One of India’s key demands is to secure complete relief from the 26% tariffs imposed by the Trump administration on specific goods. Sources indicate that consultations with the U.S. Trade Representative have been completed, and both sides have addressed multiple aspects of merchandise trade, including labor-intensive sectors like leather and textiles.
Goyal shared on social media that discussions with Secretary Howard Lutnick are progressing favorably, with a focus on expediting the first tranche of the Bilateral Trade Agreement. A source familiar with the negotiations stated, “We want to increase our exports and preserve what we are already exporting. The BTA with the U.S. will be a win-win deal for both countries.”
India maintains a cautious stance regarding vulnerable sectors, particularly agriculture and dairy. Negotiations are proceeding on a positive note, with expectations of concluding the agreement before the sunset clause set by the U.S., which expires on July 8.
Earlier, President Donald Trump indicated that India has offered zero tariffs in the ongoing negotiations. The trade agreement between India and the U.S. would represent a significant development in economic ties between the two major economies, with potential to create additional opportunities for trade and investment.
In 2024-25, the U.S. remained India’s primary trading partner for the fourth consecutive year, with trade figures reaching $131.84 billion. India achieved a goods trade surplus of $41.18 billion during this period.
At their February meeting, U.S. President Donald Trump and Indian Prime Minister Narendra Modi committed to enhancing trade and investment relations to strengthen both nations, boost economic innovation, and enhance supply chain stability. The leaders established “Mission 500,” an ambitious initiative targeting USD 500 billion in bilateral trade by 2030, effectively doubling current levels.
India’s focus remains on developing trade relationships that ensure equitable growth, protect national security interests, and create employment opportunities. Parallel to U.S. discussions, India is actively pursuing trade negotiations with the European Union, with expectations of reaching an initial agreement soon.
India-EU trade talks are showing significant progress, with both parties aiming to finalize an early harvest trade agreement this year. Representatives from India’s Commerce Ministry are scheduled to visit Brussels this week for the next phase of negotiations with the EU.