India and the United States have taken a significant step forward in finalizing an interim bilateral trade agreement, following four days of intensive negotiations in New Delhi. According to senior government sources, discussions focused on enhancing market access for select industrial and agricultural products, reducing tariffs, and addressing non-tariff barriers.
Officials described the negotiations as “productive,” highlighting shared progress on foundational elements of a balanced and mutually advantageous trade framework. The meetings, held behind closed doors, were led by top representatives from the Office of the U.S. Trade Representative and India’s Ministry of Commerce.
Talks also emphasized the expansion of digital trade and improvements in customs and trade facilitation. Both parties expressed optimism about wrapping up the initial phase of the agreement, with continued discussions scheduled in the coming weeks.
The interim agreement is expected to be signed by the end of June, aligning with the expiration of the U.S. administration’s 90-day pause on reciprocal tariffs. This deadline includes proposed duties such as a potential 26% tariff on Indian exports—products like rice, shrimp, footwear, and textiles, which collectively represent a substantial portion of India’s trade portfolio.
India’s Commerce Minister Piyush Goyal, currently engaging with European partners in Switzerland, affirmed India’s readiness to address simpler trade issues first, with a broader goal of completing the full agreement by early fall.
While India has remained firm on protecting sensitive sectors like wheat, dairy, and corn, it has offered tariff concessions on high-value U.S. exports, including nuts such as almonds, pistachios, and walnuts. India has also requested steel export tariff exemptions and the withdrawal of a 10% baseline U.S. tariff—a request that remains under review.
Trade between the two countries continues to grow. U.S. government data indicates that Indian exports to the United States surged 28% to $37.7 billion in the first four months of 2025, while imports from the U.S. rose to $14.4 billion, further widening India’s trade surplus.
India has committed to increasing its purchases of American goods, including energy resources like liquefied natural gas, crude oil, coal, and defense-related equipment, reflecting a broader strategy to strengthen economic ties.
The upcoming months will be crucial as both nations work to finalize a comprehensive and strategic trade framework designed to enhance cooperation and economic growth across key sectors.
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