President Donald Trump has indicated that the United States and India are nearing a breakthrough in their ongoing trade negotiations. Speaking at the swearing-in ceremony of Sergio Gor as the new US Ambassador to India, President Trump underscored that both sides are “pretty close” to finalising a trade agreement that would benefit both nations.

The President remarked that the forthcoming deal would mark a significant shift from previous arrangements, suggesting that while negotiations have been complex, they were heading towards a fair and balanced conclusion.

He lauded Indian negotiators for their firm approach and noted that Ambassador Gor would play a key role in concluding the process successfully.

Tariff Reductions On The Horizon

In an interaction with reporters after the ceremony, President Trump elaborated on the tariff issue that has been central to trade discussions. He explained that the elevated tariffs on Indian goods were introduced in response to India’s import of Russian oil.

However, with New Delhi considerably reducing such imports, Washington is now prepared to lower those tariffs.

“Right now, the tariffs are very high on India because of the Russian oil, and they’ve stopped doing that. It’s been reduced very substantially. Yes, we’re going to be bringing the tariffs down,” Trump stated, signalling an important concession that could smoothen trade relations between the two nations.

Indian Perspective On The Talks

Union Commerce and Industry Minister Piyush Goyal recently expressed optimism about the progress of trade negotiations with the United States. Speaking to ANI on 5 November, Goyal confirmed that discussions were “going on very well,” albeit acknowledging that multiple sensitive and serious issues remain unresolved. He stressed that the complexity of the agenda necessitates more time before arriving at a final settlement.

The minister also pointed out that while tangible progress had been made through several negotiation rounds, both sides continued to work on harmonising positions over critical sectors, including market access, digital trade, and intellectual property.

Intensive Negotiation Rounds

Negotiations between New Delhi and Washington have intensified since the process began in March 2025. As of late October, five rounds of talks had been completed, with the latest one held virtually on 23 October. The first phase of the trade agreement was initially targeted for signature by late 2025, a timeline both sides are now keen to uphold.

During these meetings, negotiators have explored frameworks aimed at ensuring balanced growth in goods and services trade, sustainable investment flows, and sectoral cooperation in areas such as semiconductors, critical minerals, defence technology, and renewable energy.

Projecting Bilateral Trade Growth

The proposed India–US Bilateral Trade Agreement, first outlined in February 2025, carries ambitious objectives. It seeks to more than double the existing trade volume from USD 191 billion to USD 500 billion by 2030. Both governments have described the agreement as transformative, intended to expand economic cooperation and strengthen strategic convergence in key global supply chains.

To maintain momentum, Commerce Minister Goyal led a high-level mission to Washington in September, accompanied by senior officials, including India’s Chief Negotiator, Rajesh Agrawal. The delegation held exhaustive consultations with US counterparts to bridge remaining gaps across priority sectors.

Positive Diplomatic Engagements

In mid-September, a US delegation led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, visited New Delhi for detailed deliberations. Officials from both sides described the dialogue as “positive and forward-looking,” agreeing to accelerate efforts to conclude a mutually beneficial trade deal at the earliest possible date.

The renewed diplomatic vigour reflects the growing strategic and economic alignment between the two democracies. With both governments expressing shared interest in enhancing trade predictability, supply chain resilience, and high-technology cooperation, the finalisation of the trade pact is widely anticipated as one of the most significant milestones in the decade-long India–US economic partnership.

Based On ANI Report