India, US 'Very Near' to a Trade Deal: Official

PTI, NEW DELHI, OCTOBER 24, 2025 :  India and the US are “very near” to concluding their proposed bilateral trade agreement, with both sides nearing agreement on most of the issues, an official stated on Friday. The finalization of the trade deal is reportedly being held up only by the final wording of the agreement.

The official further added that most of the differences have been resolved, with no significant new issues standing in the way of completing the negotiations. "We are converging on most of the issues," the official said, signaling that progress is being made swiftly.

India and the US have already completed five rounds of talks for the first phase of the bilateral trade agreement. Commerce and Industry Minister Piyush Goyal expressed optimism on Thursday, noting that discussions between India and the US are progressing smoothly. He reiterated his hopes that both countries would soon work towards a fair and equitable agreement.

Last week, an Indian delegation, led by Commerce Secretary Rajesh Agrawal, visited Washington for further trade talks with their US counterparts. These three-day talks concluded on October 17.

In February of this year, leaders of both countries directed officials to begin negotiations for the trade agreement, with a goal to complete the first phase of the pact by the fall of 2025. When asked about the upcoming November deadline, the official stated: "We are hopeful."

The discussions have been particularly significant given the strain in bilateral trade relations after the Trump administration imposed a 50% tariff on Indian goods, including a 25% additional import duty on Russian crude oil. India has called these duties “unfair, unjustified, and unreasonable.”

Following a brief pause in talks due to the tariffs, US officials resumed discussions with Indian counterparts in September. Assistant US Trade Representative for South and Central Asia, Brendan Lynch, met with Indian officials in New Delhi, where both sides expressed their commitment to concluding the deal early and ensuring it is mutually beneficial.

The proposed trade pact aims to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion. The US has been India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion (with $86.5 billion in exports from India). This accounts for about 18% of India's total goods exports.

Despite the overall strong trading relationship, India's merchandise exports to the US saw an 11.93% drop in September, falling to $5.46 billion, largely due to the high tariffs imposed by the US. In contrast, imports from the US rose by 11.78%, totaling $3.98 billion, according to the Commerce Ministry data.