NEW DELHI (Diya TV) — India and the United States are working toward a three-stage trade agreement, with Indian officials pushing to finalize an interim deal before July, when President Donald Trump’s planned reciprocal tariffs on Indian goods are scheduled to go into effect.
According to officials in New Delhi familiar with the matter, the initial agreement—referred to as the “first tranche”—would focus on expanding market access for industrial goods, select agricultural products, and addressing non-tariff barriers like quality control regulations. These officials spoke on condition of anonymity due to the private nature of the talks.
Indian Commerce Minister Piyush Goyal is currently in Washington on a four-day visit, meeting key U.S. trade officials, including Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. Goyal said on X (formerly Twitter) that he had “good discussions” with Lutnick to advance negotiations on the first tranche of the trade deal.
The structure of the deal, as envisioned by India, consists of three stages. The second tranche, expected between September and November, would be a broader agreement covering 19 key areas outlined in a bilateral terms of reference agreed in April. Indian officials say the timing may coincide with President Trump’s expected visit to India for the Quad leaders’ summit. A final, comprehensive agreement would come later, possibly in 2026, pending approval from the U.S. Congress.
While India appears confident about the three-stage structure, it remains unclear whether the Trump administration has formally agreed to such a framework. U.S. officials, including the USTR and Commerce Department, have not publicly confirmed their stance and did not immediately respond to media inquiries, nor did India’s Ministry of Commerce and Industry or the Ministry of External Affairs.
Trade talks have seen both progress and friction. After Prime Minister Narendra Modi’s February visit to the White House, India became one of the first countries to open trade negotiations with the new Trump administration. Both leaders expressed mutual interest in increasing bilateral trade and achieving early wins, particularly before the fall deadline for the interim agreement.
However, tensions have flared in recent weeks. India has signaled a firmer negotiating position by threatening retaliatory tariffs on U.S. goods if Trump’s reciprocal duties are imposed. Meanwhile, President Trump has publicly claimed that India offered to slash tariffs on American products to zero, a statement that Indian officials have not confirmed.
Another source of strain has been Trump’s repeated assertions that he played a central role in brokering a ceasefire between India and Pakistan following four days of military tensions. The U.S. president claimed he used trade talks as leverage to secure peace, a statement that New Delhi officials have firmly denied.
Despite the diplomatic undercurrents, both sides appear motivated to reach at least an interim understanding before the July tariff deadline. Indian negotiators continue to emphasize “early mutual wins,” even as they prepare for more complex negotiations in the coming months.
The outcome of this staged trade deal could significantly shape the trajectory of U.S.-India economic ties—two of the world’s largest democracies seeking closer commercial alignment amid shifting global trade dynamics.
