Very Significant Progress in India–US Trade Talks, Agreement Nearing Closure

New Delhi:
India and the United States have recorded “very significant progress” in their ongoing bilateral trade negotiations, with government sources indicating that both sides are now close to a constructive and mutually beneficial outcome. The development comes even as India successfully concluded the political landing phase of its free trade agreement with the European Union.

Senior officials have firmly dismissed suggestions that the India–EU deal was leveraged as a bargaining instrument in negotiations with Washington. According to sources, there was “no reference whatsoever” to the US during the final restricted discussions with the EU, reinforcing the view that the agreement was pursued on its own commercial rationale, sequencing and strategic merit.

At the same time, the government has underscored that it remains sharply focused on the US track, describing the American market as “as important, if not more important,” for India’s long-term export and investment strategy. Officials confirmed that trade negotiators from both countries remained in regular contact throughout the closing stages of the EU talks, signalling continuity and momentum in the India–US engagement.

Sources have framed India’s broader trade posture as a calibrated response to a rapidly fragmenting global trade environment. With the multilateral, MFN-based WTO framework increasingly under strain, countries are prioritising bilateral and plurilateral arrangements with major economic partners to secure predictability, market access and supply-chain resilience. India’s approach, officials said, is to build a diversified portfolio of trade agreements rather than rely on any single deal.

Importantly, the government does not view exports to the EU and the US as competing objectives. Instead, policymakers prefer that exports expand in both markets simultaneously, supporting domestic job creation, industrial growth and investor confidence. The EU agreement, described as engagement with the world’s largest import market, is being positioned as a template—featuring early tariff advantages, structured mechanisms to address non-tariff barriers, and a framework that allows future expansion and review.

While officials have refrained from disclosing the precise architecture of the proposed India–US trade pact, negotiations have been characterised as “robust” and advanced. The remaining issues are understood to be sufficiently narrow to enable a near-term conclusion.

The government’s messaging is also aimed squarely at industry and investors. By emphasising that trade policy is being driven by commercial outcomes—market access, rule stability and supply-chain integration—rather than geopolitical signalling, New Delhi is seeking to reinforce confidence that India’s external economic strategy is pragmatic, parallel and growth-oriented.