- By Chetna Shree
- Sun, 31 May 2026 06:28 PM (IST)
- Source:JND
- India-US trade deal 99% complete, final talks begin.
- Negotiations in New Delhi to finalize interim agreement.
- Focus on tariff reduction, market access, investment promotion.
India-US Trade Deal: Negotiations for a trade deal between India and the United States are 99 per cent complete, with only the final one per cent left to be resolved. Chief negotiators from both nations are set to meet in New Delhi for four-day talks starting Monday, June 1.
The meeting will focus on finalising the details of the interim trade agreement, the framework of which was agreed upon in February and taking forward negotiations under the Comprehensive Bilateral Trade Agreement (BTA).
"The two sides are proposed to finalise the details of the interim agreement and take forward the negotiations under the broader BTA on multiple areas such as market access, non-tariff measures, customs and trade facilitation, investment promotion, and economic security alignment," news agency PTI quoted the commerce ministry as saying.
US-India Trade Talks
The Indian delegation will be led by Darpan Jain, Additional Secretary in the Ministry of Commerce and Chief Negotiator, while the US team will be led by his counterpart, Brendan Lynch, Chief Negotiator for the US.
The February 2026 Breakthrough
India and the United States, on February 7, issued a joint statement outlining the framework for an interim trade agreement. Under the framework, the US agreed to lower tariffs on India to 18 per cent from 50 per cent.
Duties that previously reached up to 50 per cent on various products will be reduced to 18 per cent. Additionally, the agreement included a proposal to remove the 25 per cent tariff imposed on Indian goods for buying Russian oil, capping the remaining duty at 18 per cent.
The US Supreme Court's Decision
The US Supreme Court on February 20 ruled against President Donald Trump's sweeping reciprocal tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA).
Following the ruling, the Trump administration announced a 10 per cent tariff on all countries for 150 days, starting February 24. This led to the postponement of talks between India and the US scheduled for February.
To carry forward the negotiations, an Indian delegation led by Jain visited Washington in April 2026. The two sides are now set to meet in New Delhi for four-day talks starting Monday, June 1.
India To Eliminate Or Reduce Tariffs On THESE US Goods
Under the agreed framework, India has proposed to eliminate or reduce tariffs on all US industrial goods, along with several agricultural and food products, including
- Distillers Dried Grains (DDGs)
- Red Sorghum for animal feed)
- Tree nuts
- Fresh and processed fruits
- Soybean oil
- Wines and spirits
In return, India has expressed its intentions to purchase approximately USD 500 billion of American goods over the next five years, including:
- Energy Products
- Aircraft and aircraft parts
- Precious metals
- Technology Products
- Coking coal
India-US Trade
The United States emerged as India's second-largest trading partner in 2025-26, with Indian exports to the US increasing to USD 87.3 billion. Imports from the US increased 15.95 per cent to USD 52.9 billion. The trade surplus declined to USD 34.4 billion in 2025-26 from USD 40.89 billion in 2024-25.
According to a report by Jagran.com, citing experts, Washington's imposition of a uniform 10 per cent tariff on all countries has altered the global trade landscape. As a result, both nations may seek to modify the terms of the agreement during these talks.
(With Inputs From PTI)