US-India Trade Deal: External Affairs Minister S Jaishankar on Saturday said India and the US have sorted out the bulk of the issues relating to the proposed trade deal, including tariff lines. Jaishankar, addressing an interactive session at the HT Leadership Summit, asserted that the India-US deal could be sealed "soon" as talks continue to resolve the last stretch of concerns.
The development came at a time when the United States has assured India that it will enjoy a comparative tariff advantage over peer economies under the proposed bilateral trade pact, news agency ANI reported, quoting a senior government official, even as negotiations on the first tranche and the broader agreement continue.
US-India Trade Deal Likely To Be Sealed During PM Modi's US Visit
Prime Minister Narendra Modi is likely to visit the US for the G20 Summit, on the sidelines of which he and President Donald Trump may meet to review the broader trajectory of bilateral ties and progress on the trade pact. There has been speculation that India and the US may announce the trade deal following talks between PM Modi and Trump on the sidelines of the G20 Summit, to be held in Miami on December 14 and 15.
Negotiations Are Approaching The 'Finishing Line': Jaishankar
The external affairs minister said the negotiations are approaching the "finishing line", adding that many of the remaining issues are "not so much at our end" and that more changes have occurred on the American side.
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"Well, it's certainly our hope, and in many ways anticipation that we are at the last stretch. That's not a secret," he said, responding to a question on the negotiations for the trade pact.
US Assures India Of Comparative Tariff Advantage: Official
Meanwhile, a senior government official on Saturday said the US assured that India would get a comparative tariff advantage over peer economies under the bilateral trade deal. "The US has assured India of a comparative tariff advantage over its competitors in the trade deal. We will have to see how the tariff framework unfolds," the official said.
However, the official cautioned that the advantage will depend on the final tariff structure, as the outcome of the second investigation initiated by the Office of the United States Trade Representative (USTR) against India is still awaited.
India is working to close the first tranche of the deal by the end of this financial year, the official said, adding that talks are being held simultaneously on the first tranche and the broader Bilateral Trade Agreement (BTA).
Issues related to services will not be part of the initial package. They will be taken up as part of the second tranche, the official said, and will form part of the larger BTA.
What Is Behind The Delay In India-US Trade Deal?
India-US relations witnessed a major downturn after Washington imposed punitive tariffs on India last year and President Trump made assertions regarding his role in de-escalating the India-Pakistan military clashes of May 2025 that drew sharp reaction from Indian officials. A 25 levy on Russian energy purchases and Washington's new immigration policy and its decision to increase the H1B visa fee also contributed to the slide in India-US ties. The ties came under fresh strain after the US decided to restrict a key green-card processing programme for major global and Indian IT firms, including Tata Consultancy Services and Wipro. These moves impacted the atmosphere of talks for the trade deal. The government reiterated on several occasions that the ball is in the US' court, hinting that the delay is being made by Washington.
(With Agencies Inputs)