First tranche of India-US trade deal near but can't put a date on it, says commerce secretary

India and the US have held several round of trade talks. (file photo)

The first tranche of the India–US trade deal, which is expected to help lower reciprocal tariffs on Indian exports, is close to being finalised, though no timeline can be committed, commerce secretary Rajesh Agrawal said on January 15.

There was a virtual meeting between India's commerce minister Piyush Goyal and the US trade representative (USTR) in the last week of December and negotiating teams on both sides are in continuous talks to arrive at a consensus, Agrawal said.

"Negotiating teams are talking continuously to get consensus. But we cannot put a deadline, it is very near but we cannot put a date," Agrawal said.

The US has imposed reciprocal tariffs of 50 percent on most India goods, the highest in the world.

Both sides remain engaged and committed to securing a deal, Agrawal said, dismissing speculation about a scenario where talks could fail.

A delegation led by Deputy US Trade Representative (USTR) Rick Switzer-led was in New Delhi from December 9-11 during which discussions were held on the framework deal as well as the broader Bilateral Trade Agreement (BTA).

India and the US have held six rounds of talks so far covering both the broader BTA and an interim arrangement aimed at lowering reciprocal tariffs.

Talks for a BTA between India and the US first emerged in February, when during a meeting between Prime Minister Narendra Modi and his American counterpart, President Donald Trump, the two leaders set a bold new target for bilateral trade, “Mission 500”, aiming to more than double total trade to $500 billion by 2030.

As part of this new goal, the two sides announced plans to negotiate the first tranche of a mutually beneficial, multi-sector BTA by the fall of 2025. While that deadline has been missed, India’s Chief Economic Adviser recently signalled that there should be an interim pact by at least March 2026.

A trade deal between India and the US is crucial given that Indian exports worth roughly $48.2 billion are facing elevated tariffs.

India also hopes that exports to the US will remain in positive territory, noting that electronics shipments, which are currently tariff-free, have been a key driver, so far, even as higher duties continue to impact other sectors, Agrawal said.

Exports to the US rose 9.8 percent year-on-year to $65.9 billion during April–December of FY26, government data shows.