US optimistic on India trade talks, signals ‘a lot of positive progress’ before year-end

A lot of positive developments: US eyes trade deal with India before year-end

The United States has signalled progress in its long-pending trade negotiations with India, with a senior administration official citing “a lot of positive developments” in recent talks, according to ANI. This comes following weeks of easing tensions over India’s imports of Russian oil, following months of friction and stalled discussions.

Speaking to reporters, the official said Washington is simultaneously working on two key issues with New Delhi, a reciprocal trade agreement and concerns related to Russian oil purchases.

"I think we’ve had a lot of positive developments with them recently," the official said. "We have two things going on with them. Of course, we have a reciprocal trade negotiation, but we also have a Russian oil issue, where we’ve seen market improvement on that end.”

The official added that negotiators are hopeful of making progress “before the end of the year,” while cautioning that significant work remains. “I’d like to say we can relax and take a break, but there’s still a lot to do,” they said, describing the overall pace of discussions as encouraging.

The proposed reciprocal trade deal aims to address longstanding disagreements on tariffs and market access. Key issues include US concerns over duties on agricultural and industrial goods, India’s demand for restored trade preferences, and New Delhi’s push for greater opportunities for Indian services professionals in the United States.

The remarks came as the White House announced preliminary trade agreements with Argentina, El Salvador, Ecuador and Guatemala, offering tariff reductions on goods not produced within the United States. Officials described these deals as part of a broader strategy focused on targeted, bilateral partnerships.

The senior official also highlighted constructive engagements with Vietnam, Indonesia, and Switzerland, signalling Washington’s preference for focused bilateral agreements over expansive multilateral frameworks.

As Sergio Gor begins his term as US ambassador to India, President Donald Trump hinted at possible tariff reductions on Indian imports during Gor’s swearing-in ceremony, suggesting movement on the deal.

A reciprocal agreement between the two countries could resolve several long-standing issues, including tariff disputes, India’s request for a reinstated preferential trade status, intellectual property concerns, and expanded access for India’s technology and services sectors.

Despite the positive signals from Washington, the Indian Ministry of Commerce and the Ministry of External Affairs had not commented on the official’s statements at the time of publication.

Bilateral trade between India and the US reached about USD 190 billion in 2024, and both sides have expressed interest in significantly scaling up economic engagement.