NEW DELHI (Diya TV) — India and the United States have made significant headway in crafting an interim trade deal that could be signed as early as this month, with negotiators aiming to boost annual bilateral trade from $190 billion to $500 billion by 2030.
After four days of closed-door meetings in New Delhi, both sides reported productive talks focusing on market access, tariff reductions, and easing non-tariff barriers, according to Indian government officials cited by Reuters. U.S. negotiators from the Office of the U.S. Trade Representative met with their Indian counterparts, led by Rajesh Agrawal, India’s Chief Trade Negotiator.
“The negotiations were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement, including through achievement of early wins,” a government source told Reuters.
The discussions centered around enhancing market access for industrial and select agricultural products. While the U.S. pushed India to open up its markets for wheat, dairy, and corn imports, New Delhi resisted, instead offering tariff cuts on high-value American exports like almonds, pistachios, and walnuts.
Digital trade also emerged as a key focus. Negotiators explored ways to streamline customs processes and improve trade facilitation measures. Officials suggested that digital trade could play a major role in expanding future bilateral commerce.
India also requested that the U.S. revoke its 10% baseline tariff, imposed during the Trump administration under a national emergency. However, American negotiators pushed back, noting that even post-Brexit Britain was subject to the same tariff in its recent bilateral trade pact with the U.S.
On the steel front, India sought exemption from a hefty 50% U.S. tariff on its exports. In return, New Delhi expressed willingness to increase imports of American liquefied natural gas (LNG), crude oil, coal, and defense equipment.
The pressure to finalize a deal has intensified. Former President Donald Trump—currently seeking re-election—is under fire for his abrupt trade policy moves and is eager to strike a deal with India before his 90-day pause on reciprocal tariffs expires. The pause includes a looming 26% tariff on Indian goods such as rice, shrimp, textiles, and footwear. These products represent nearly 20% of India’s total merchandise exports and are highly vulnerable to such trade penalties.
Sources say the interim agreement may be announced on the sidelines of the G7 Summit in Canada, where Trump and Indian Prime Minister Narendra Modi are scheduled to meet. That summit begins in less than a week.
Commerce Minister Piyush Goyal, though absent from the New Delhi talks due to separate negotiations in Switzerland with the European Union, indicated India’s readiness to begin with simpler components of the trade pact. “India is prepared to proceed with the deal by first addressing simpler issues,” Goyal said, per government statements.
More complex areas—such as agricultural market access and strategic tariff frameworks—will be addressed in a second phase of negotiations. Officials aim to conclude this next tranche by September or October 2025.
The trade momentum is already building. According to U.S. government data, India’s exports to the United States rose 28% to $37.7 billion in the first four months of 2025. Imports from the U.S. also increased, reaching $14.4 billion, widening India’s trade surplus.
The interim deal, if signed, would mark a crucial step in strengthening one of the world’s most important economic relationships—one that both nations hope to transform into a long-term strategic alliance.
