India expects to secure a trade deal with the United States before the end of this year, a senior official said. Most technical issues have been resolved, and remaining matters could be addressed at a political level, India’s trade secretary Rajesh Agrawal added. The agreement is expected to address tariffs, market access, and other trade barriers between the two countries.
The U.S. imposed tariffs of up to 50% on Indian imports in late August, even as negotiations continued. President Donald Trump recently said discussions with Prime Minister Narendra Modi were “going well.” The U.S. has pushed India to reduce oil purchases from Russia and lower tariffs in sensitive sectors, including agriculture, dairy, and manufacturing.
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Agrawal told industry leaders that the framework trade deal will tackle reciprocal tariffs and create a platform for future trade cooperation. He expressed optimism, saying India and the U.S. are close to finalizing the deal within 2025. Any remaining issues, he added, can be resolved through high-level political engagement if necessary.
India’s trade deficit reached a record $41.68 billion in October, mainly due to higher gold imports and a decline in exports to the U.S. Agrawal noted that while the deficit is high, it is not in a “worrying zone” and reflects normal seasonal trends and global economic shifts.
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Analysts say a final deal could boost bilateral trade, reduce tariff tensions, and enhance investment opportunities. They note that easier market access may benefit Indian exporters, U.S. importers, and strengthen overall economic ties between the two nations.