India-US Trade Deal on the Horizon: Talks in Final Stages, Says Government Official

A senior official of the government has stated that the two countries are coming very close to the finalization of a long-anticipated bilateral trade agreement, as most issues have been resolved and discussions are taking place smoothly.

The official, speaking to PTI, said, “In terms of the deal we are very close.” The official also said that in this phase of negotiations there were no new obstacles and the US and India were “moving together or converging” on the majority of the issues.

Five Negotiation Rounds Completed

The US and India already had 5 rounds of talks for the first part of the agreement. The officials are now polishing the details to get the consent, thus making it a very important point in the trade relationship between the two democracies that are the largest in the world.

Background: Tariffs and Energy Trade

This deal comes against the backdrop of increasing trade tensions in the wake of 50% tariffs on Indian exports (including some—related to India’s crude oil imports from Russia) imposed by the Trump administration.

In a recent statement, Trump said India would soon cut its reliance on Russian crude oil, while also announcing sanctions on Russian energy firms Rosneft and Lukoil—actions that may impact the future of India-US trade relations.

Piyush Goyal's No-Rush Agreements

Trade deal with the US has become a topic of optimism but Commerce and Industry Minister Piyush Goyal made it clear that India would not push for any trade deals among other things besides negotiations. During the Berlin Dialogue in Germany, Goyal said,

“We are in active dialogue with the EU. We are talking to the US, but we do not do deals in a hurry or with deadlines—or with a gun to our head.”

He emphasized that the decision of whether to enter into trade agreements should be made considering the long-term national interest rather than succumbing to short-term political or economic pressures.

Goyal pointed out the independent nature of India regarding international partnerships as he said,

“India decides its friends based on national interest. If we are told that we cannot work with the EU or Kenya, then that is unacceptable.”

What’s Next

Experts foresee that the trade agreement between India and US being signed off shortly would eventually lead to collaboration in the sectors of technology, energy, and manufacturing. The final pact is likely to cover areas like barrier tariffs, investment promotion, and market entry.

If the deal is finalized soon, it will very likely become an important turning point in the process of economic interdependence between New Delhi and Washington, especially under the current condition where both nations are aiming at developing their cooperation in strategic as well as commercial areas.