FM Sitharaman confident of the first phase of India-US bilateral trade agreement by Fall this year

FM Sitharaman said the priority accorded by India to engage with the US government on the trade deal has been more than obvious, with Prime Minister Modi himself visiting the US in February this year.

India is actively engaging with the Trump administration in the United States to seal a bilateral trade agreement by fall this year, when the first phase of the pact will hopefully be concluded, Finance Minister Nirmala Sitharaman has said on April 20 during her US visit.

Speaking to the Indian diaspora in San Francisco, USA, Finance Minister said, “In the interest of keeping an agreement in mind, and in the interest of our largest trading partner with who we need to have an agreement. By fall this, we should at least have the first phase of the agreement signed.”

Sitharaman said the priority accorded by India to engage with the US government on the trade deal has been more than obvious, with Prime Minister Modi himself visiting the US in February this year. “You had the commerce and trade minister come (here to the US). I have (also) come here... I am scheduled to meet the Treasury Secretary, my counterpart here,” she said. FM Sitharaman also mentioned about US Vice President JD Vance’s meeting with Prime Minister Modi in New Delhi.

FM Sitharaman also mentioned that the Additional United States Trade Representative (USTR) visited India to engage with the negotiating team handling tariff-related discussions for the Bilateral Trade Agreement.

Moneycontrol had reported last week that New Delhi is considering ramping up import of American defence equipment and energy to narrow its trade surplus with Washington, in return for tariff relief on certain goods.

“Strategy would be to buy more defence, aircraft equipment and oil to reduce US' trade deficit. We can also tell them to remove the 26 percent tariffs on India, at least on products where we have an edge versus China, Vietnam and Thailand since relatively higher levies have been proposed for them,” a source had told Moneycontrol recently. India's merchandise trade surplus with the US was $41.18 billion in FY25.

FM Sitharaman also said that during the past decade, the Modi government has ensured stability in governance, policy, taxation policy in particular, and making sure that corruption at higher levels are all removed. “Uncertainty has existed always, but not at this scale, frequency, and intensity (as seen today). And as a result, what we did for India in the last 10 years, sort of lifted it out of that ‘lethargy’, you find you’re now primed to face the global uncertainties, and therefore, you’re confident you can pass this season through,” the FM said.

"That’s the credit which I want to give PM – Relentless pursuit for clean good governance”, said the Finance Minister. Sitharaman further said that by 2030, India is set to fulfil nationally determined commitments - given for climate action - well in time.

The FM stressed on the need to build capacities in the ‘sunrise sectors’.

“India has shown to the world that it has leadership position in many areas – like Digital Public Infrastructure. As a result, people who couldn’t think of global market access, can do it. But also making sure the leadership in providing the world with those kinds of finer skills, which India has shown leadership in,” Sitharaman added.