Just a day after India wrapped up negotiations on its Free Trade Agreement with the European Union, a deal being called the “mother of all deals”, attention has now shifted to the United States. According to ANI, sources in the Ministry of External Affairs say India is hopeful of closing the long-awaited trade agreement with the US very soon. In fact, officials suggest the deal could be finalised “any day now”.
According to them, what remains is mostly technical work. “It’s just the dotting of the Is and the crossing of the Ts,” a source said, pointing to how close both sides are to sealing the agreement.
The renewed push comes at a time when India is hoping for relief from steep tariffs imposed by the Donald Trump administration. Earlier, the US slapped tariffs of up to 50 per cent on select Indian goods, a move that had strained trade ties between the two countries and added urgency to finalising a balanced agreement. Officials said talks had earlier slowed down and even stalled, despite both sides showing interest in closing the deal.
After EU pact, India turns focus to US trade deal
Officials, according to ANI, said negotiations with the US made solid progress even while talks with the European Union were underway. Recent rounds of discussions have been described as robust, with both sides pushing hard to move things forward.
The agreement, known as the India-US Bilateral Trade Agreement (BTA), was formally proposed in February following directions from the leadership of both countries. Talks were first announced during Prime Minister Narendra Modi’s visit to Washington in February 2025.
First tranche of deal ‘very near’
Earlier, India’s Commerce Secretary Rajesh Agrawal said the much-anticipated first tranche of the BTA is “very near”. However, he stopped short of giving a clear timeline for when it would be announced. The goal of the agreement is ambitious. It aims to more than double bilateral trade between India and the US, from the current USD 191 billion to USD 500 billion by 2030.
On January 9, the Ministry of External Affairs reiterated that both countries have been committed to a trade deal for quite some time. “India and the United States were committed to negotiating a bilateral trade agreement with the US as far back as February 13 last year. Since then, two sides have held multiple rounds of negotiations to arrive at a balanced and mutually beneficial trade agreement,” the MEA said.
US trade official praises India-EU deal
Meanwhile, US Trade Representative Jamieson Greer praised the India-EU trade deal, saying India appears to have come out ahead.
“EU is turning to India to try to find a place. The EU is so trade-dependent that they need other outlets if they can’t keep sending all their stuff to the United States,” Greer said in an interview with Fox News. “I’ve looked at some of the details of the deal so far. I think India comes out on top on this, frankly,” he added.
Greer said the EU deal could give India better access to European markets and possibly improved mobility options for Indian workers.
“They get more market access into Europe. It sounds like they have some additional immigration rights. I don’t know for sure, but President von der Leyen of the EU has talked about mobility for Indian workers into Europe,” he said.
“So, I think on net, India’s going to have a heyday with this.”
When asked about tariffs linked to India’s purchase of Russian oil, Greer said the US expects India to gradually reduce these imports.
“They have made a lot of progress on this. I am in frequent contact with my counterpart in India. I have a great working relationship with him, but they still have ways to go on this point,” he said.
Trump confident, praises PM Modi
US President Donald Trump has also voiced confidence about the India-US trade deal. Speaking in Davos on January 21, after addressing the 56th Annual Summit of the World Economic Forum, Trump said the two countries were headed for a strong agreement.
“I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine, and we are going to have a good deal,” Trump told Moneycontrol when asked about the trade talks. He added that India and the US are “going to have a good deal.”