- By Shivangi Sharma
- Wed, 15 Oct 2025 04:36 PM (IST)
- Source:JND
India and the United States are accelerating efforts to conclude their long-pending trade negotiations, with both sides expressing optimism that an agreement could be finalised by next month, according to government sources. Officials told ANI that engagement between the two countries is “ongoing at a deeper level,” with India’s negotiating team currently in Washington. The US Ambassador-designate, who recently visited New Delhi, met several stakeholders and held “good meetings” aimed at building consensus on outstanding issues. “We are trying to see if we can reach a win-win solution between the two sides. Discussion is on the table, and export growth to the US may continue,” the source said.
Major Trade Issues Near Resolution
Government officials confirmed that around 45 per cent of India’s exports to the United States remain outside tariff coverage. While most trade-related disagreements have reportedly been resolved, India’s continued purchases of Russian oil remain a key point of contention. Sources familiar with the discussions said New Delhi is “working on a mutually acceptable plan” to address the concern without compromising its energy security or national interests.
ALSO READ: PM Modi Dials 'Friend' Trump To Praise Gaza Peace Plan, Reviews India-US Trade Negotiations
Focus On Energy And Clean Technology
Alongside resolving market access issues, India is exploring opportunities to scale up imports of liquefied natural gas (LNG) and renewable energy technologies from the US. Both nations see energy cooperation as a strategic priority.
“Energy collaboration remains an area of mutual interest,” an official said. India is exploring avenues to buy more gas and renewables from the US. This aligns with our clean energy transition goals and helps diversify our energy sources.”
Deepening Economic Partnership
The renewed trade momentum comes as both nations seek to strengthen their economic partnership amid global geopolitical shifts. Bilateral trade between India and the US reached a record USD 191 billion in 2023, making the US India’s largest trading partner. The talks now cover tariff issues, digital trade, investment facilitation, and technology transfer.
India’s parallel trade negotiations with the European Union (EU) are also progressing, though some key issues remain unresolved. Differences persist over the Carbon Border Adjustment Mechanism (CBAM) and trade concerns in the steel, automobile, and agricultural sectors.
An Indian delegation is expected to travel to Brussels later this month for another round of talks to bridge these differences and push forward the India-EU Free Trade Agreement (FTA).
Officials remain cautiously optimistic that both the India-US trade deal and progress on the EU FTA can be achieved by the end of the year. Although India’s Ministry of Commerce and Industry has not issued an official statement, sources say the pace of engagement has significantly picked up, signaling a strong push toward finalising key trade frameworks before November.