NEW DELHI — Negotiations between India and the United States over a proposed bilateral trade agreement have resolved the bulk of pending issues—including complex tariff lines—and are approaching the finishing line, External Affairs Minister S. Jaishankar stated on Saturday.
Speaking during an interactive leadership forum in the national capital, Jaishankar indicated that discussions have entered their final stretch and expressed optimism that the agreement could be finalized soon. The remarks come roughly a month ahead of Prime Minister Narendra Modi’s anticipated visit to the United States for the G20 Summit in Miami on December 14 and 15, where a bilateral meeting with US President Donald Trump is expected to review overall ties and progress on the trade pact.
Core Objectives and Remaining Hurdles
Having engaged in negotiations since early 2025 to address tariff friction, eliminate non-tariff barriers, and expand market access, New Delhi is seeking a balanced pact that strengthens its export competitiveness:
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Comparative Advantage: Jaishankar emphasized that India’s primary objective is securing a mutually beneficial agreement that grants Indian exports favorable tariff terms relative to comparable global economies, noting that the United States represents India’s largest export market.
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Final Stretch Adjustments: Pointing out that the remaining issues stem largely from policy shifts on the American side rather than Indian hurdles, the minister noted that line-by-line tariff negotiations require meticulous scrutiny because livelihoods and domestic employment are directly affected.
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Strategic Assessment of FTAs: Contrasting current trade negotiations with earlier agreements signed with competing Asian economies that yielded limited gains, Jaishankar stated that India’s recent trade pacts are far more strategically and economically calibrated.
Broader Context of Bilateral Ties
A successful conclusion to the trade talks could inject fresh momentum into India-US relations, which have faced significant headwinds over the past year:
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Tariff and Diplomatic Friction: Bilateral ties experienced strain following punitive tariffs imposed by Washington last year, alongside diplomatic friction over American assertions regarding the May 2025 India-Pakistan military de-escalation.
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Immigration and Corporate Mobility: Relations have also been tested by stricter US immigration policies, increased H-1B visa fees, and recent restrictions affecting a key green-card processing pathway utilized by major Indian and global information technology firms.
