India-US Trade Talks in Advanced Stage
India and the United States are reportedly in “advanced stages” of discussing a bilateral trade agreement, according to Commerce & Industry Minister Piyush Goyal. He said teams from both countries are engaged in talks and remain focused on reaching a fair and equitable outcome.
What the Deal Might Include
Among the possible elements under discussion are a significant reduction in US import tariffs on Indian products — current tariffs of around 50 per cent could be lowered to approximately 15 per cent — and greater access to the US market for Indian goods. In return, India may make commitments in areas such as energy imports and strategic goods, although the details are still being negotiated.
Key Challenges and Strategic Priorities
Despite progress, several major issues remain unresolved. Sensitive sectors such as agriculture and dairy in India are unlikely to be subjected to sweeping liberalisation. India continues to emphasise that the deal must serve its national interest, ensuring that its comparative advantage is maintained rather than simply giving up protections. Both sides appear to be aligning on the principle of a “fair and equitable” arrangement rather than just a rapid signature.
Outlook
While a framework agreement seems plausible, a final deal is unlikely to be signed imminently. Talks are expected to continue through the year and may culminate in a pact by early 2026 if consensus is reached. Meanwhile, businesses on both sides are watching closely for any substantive outcome.
