The first phase of a landmark bilateral trade agreement between India and the United States is expected to be finalized within the 90-day tariff-pause period announced by the Donald Trump administration, according to official sources. The terms of reference for the agreement have been settled, with further discussions set to continue predominantly through video conferencing. However, provisions have been made for Indian negotiators to travel to Washington or for US officials to visit Delhi if necessary.
As negotiations progress, Indian authorities are exercising vigilance to prevent other nations from exploiting India as a route to circumvent elevated tariffs imposed by the US. The Central Board of Indirect Taxes and Customs has been put on alert to ensure that Indian exporters do not engage in re-routing through third countries, a practice that could damage India’s reputation as a trusted trade partner.
India’s Commerce Minister highlighted the positive strides being made in the ongoing talks with the US. Speaking at a joint conference with Italy’s Deputy Prime Minister, he underscored India’s compelling case for a bilateral trade deal, pointing to the country’s robust growth outlook and its young, aspirational demographic poised to drive demand for goods and services over the next 25 to 30 years.
The minister expressed optimism about the negotiations, emphasizing that while deadlines help expedite discussions, the focus remains steadfast on prioritizing national interests. He reaffirmed India’s ambition to establish a mutually beneficial agreement with the US that aligns with the long-term economic goals of both nations.
The bilateral trade agreement is a critical component of the ambitious “Mission 500,” which seeks to more than double the trade volume between India and the US to $500 billion by the year 2030. The initiative reflects a strategic effort to deepen economic ties and capitalize on the complementary strengths of the two economies.
Recent developments in US trade policy have further shaped the context of these negotiations. The US has granted a 90-day exemption from reciprocal tariffs to 75 non-retaliating countries, with a baseline 10 percent tariff imposed on all other nations except China. This tariff pause has created a window of opportunity for India and the US to finalize the initial phase of their trade agreement.
As discussions advance, both nations remain committed to fostering a strong and equitable partnership that will enhance bilateral trade and contribute to global economic stability. The successful conclusion of the trade deal within the tariff-pause period would mark a significant milestone in the evolving relationship between the two countries.
