CEA Nageswaran says most trade issues between India, US 'sorted out': 'Will be surprised if no deal by March'

Chief Economic Adviser V Anantha Nageswaran

India’s chief economic advisor V. Anantha Nageswaran said most of the trade issues between New Delhi and Washington have been “sorted out” and he will be surprised if a deal is not struck by March. The top economist said he has full confidence that an agreement will be reached by March 2026.

“I was hoping something would be done by the end of November, but it has turned out to be elusive. That’s why it is difficult to give a timeline on this. However, I would be surprised if we don’t have it sealed by the end of the financial year,” Nageswaran said in an interview with Bloomberg Television.

Further, Nageswaran said the FY27 economic outlook has a positive momentum.

Initially, New Delhi and Washington had agreed to conclude the first tranche of the trade agreement, by fall of this year. However, the two nations failed to strike a deal before the deadline. In the last few weeks, India has expressed confidence that the deal could be concluded by the end of the year.

Nageswaran blamed geopolitics for the delay and said it is hard to put a timeline for the deal.

“I believe this is as much a matter of geopolitics as it is of bilateral trade,” the CEA said, adding “right now, it is very difficult to put a timeline to it.”

GDP and rupee

Despite the trade tariffs on Indian goods, the CEA said the country's economy is "doing rather well", with exporters managing to hold out against the tariff effects and “partially offset the negative fallout by diversifying into other markets.”

“The economy has surprised us with better performance than we anticipated early in the forecast cycle. I will not be surprised if something like this happens for 2026–27 as well,” he said.

Moreover, he said a weaker rupee at this point of time has been beneficial for the export sector amid the global uncertainties. The rupee, according to Nageswaran, has lost lost 5 percent–15 percent of its value against India’s trade competitors. “Having a weaker rupee at this point is not a major problem, as it benefits the export sector given global uncertainties,” he said.

Continuous engagement to strike an early deal 

The remarks come a day after US Trade Representative Jamieson Greer said that India has made the "best offers Washington has received as a country" so far as both nations continue their trade discussions for a deal.

Greer, further during a Senate Appropriations subcommittee hearing in Washington, said that a US team is in India to work out an agreement over the agriculture barriers as America seeks market access for its farm products.

Deputy US Trade Representative Ambassador Rick Switzer-led high-level delegation from the office of the US Trade Representative is currently in New Delhi as engagement between the two nations for the trade deal pick up pace. India’s negotiations are being led by Joint Secretary Darpan Jain.

The US official noted that there was a "resistance in India" on some crops. However, the latest proposals have marked un unusual opening, he said.

Greer also suggested that India is now “a viable alternative market” for US commodities at a time when American producers are facing piling inventories and fluctuating demand from China.

The remarks come in the backdrop of ongoing trade negotiations in New Delhi on the proposed bilateral trade agreement. The visit by the US team is crucial as both sides are working to finalise the first tranche of the pact.

This is the second such visit by a US official after US President Donald Trump announced a 25 percent extra penalty on Indian goods for purchasing Russian oil. This was over and above an existing 25 percent tariff, making India one of the highest tariffed nation. Since then, India has diversified its energy imports.

In addition, US Under Secretary of State for Political Affairs Allison Hooker was on a 5-day visit to India till December 11 to advance the “strategic partnership” between the two nations, the US Embassy in India had said in a statement on Sunday.

Interestingly, the two visits by high-level US teams come soon after Russian President Vladimir Putin made a visit to India last week.