India has made significant progress in trade negotiations with the United States, reportedly outpacing other nations in finalising the first phase of a bilateral trade agreement. According to a Reuters report citing a government official, both countries have agreed on the terms of reference for talks, marking a major step forward amid a temporary pause on new US tariffs.
The deal, which could be finalised within the next 90 days, is being described as a potential “win-win” for both economies. With the US serving as India’s largest trading partner, the total two-way trade between the nations stood at over $118 billion in the 2023-24 fiscal year.
The push for a deal gained urgency after US President Donald Trump announced a 26% tariff on Indian goods last week. However, India has refrained from retaliatory tariffs, instead opting for swift engagement and diplomacy. The US has issued a 90-day suspension on these tariffs for countries like India, providing a window for negotiations.
Commerce Minister Piyush Goyal emphasized the shared burden both nations have faced due to what he called China’s “unfair trade practices.” He said the move to fast-track trade talks is part of a larger effort to position India as a reliable partner in global supply chains.
In a statement, a trade official confirmed that virtual negotiations between India and the US will continue regularly and that both countries have already agreed on a timeline to complete this first phase.
To prevent misuse of the relaxed tariff period, Indian customs officials have been instructed to closely monitor export and import patterns, especially to ensure that India isn’t used as a hub for re-routing goods to bypass US tariffs.
In February, both nations had committed to working on a phased trade deal, aiming to expand two-way trade to $500 billion by 2030.
President Trump, referencing his meeting with Prime Minister Narendra Modi, said: “He’s a great friend, but I told him — you’re not treating us right. India charges us 52%, so we’re charging 26%.”
The coming months will be critical in determining whether India and the US can solidify a new economic framework amid global trade tensions.
