ndia and the United States are on the verge of finalizing a key trade agreement, according to U.S. President Donald Trump, who stated in an interview on July 16 that both nations are “very close” to concluding a deal. The agreement, reportedly modeled after the recent U.S.–Indonesia trade pact, is expected to be announced before the August 1 tariff deadline.
Talks have gained momentum in recent weeks as both sides work to avoid a new round of reciprocal tariff hikes that could affect billions in bilateral trade. While details of the agreement are still under wraps, sources suggest that the deal would focus on reducing import duties and expanding market access for U.S. companies in key Indian sectors including steel, automobiles, agriculture, and electronics.
An Indian trade delegation led by Chief Negotiator Rajesh Agrawal is currently in Washington to finalize terms. “Negotiations are progressing with mutual respect and an eye on national interest,” said a senior official familiar with the discussions.
For India, the stakes are high. Exporters across industries such as apparel, seafood, and gems & jewellery are closely watching developments, with pending U.S. orders hinging on the outcome of the talks. Meanwhile, domestic agricultural groups have raised concerns, urging the government to exclude sensitive sectors like dairy and grains from the final deal.
The U.S. administration is reportedly offering tariff reductions of up to 20%, similar to concessions given to Indonesia earlier this month. “India is a major trading partner, and this agreement will open new doors for American businesses while respecting Indian priorities,” a U.S. official said on condition of anonymity.
The agreement, if finalized in time, would mark a significant shift in bilateral trade dynamics and could pave the way for a broader trade partnership in the future.
With just two weeks remaining until the self-imposed deadline, all eyes are now on New Delhi and Washington for an official announcement.
