India and the United States are close to finalizing a historic trade deal that includes major tariff reductions. The agreement is expected to boost exports, strengthen strategic cooperation, and mark a new phase in bilateral relations.
India–U.S. Trade Deal Nears Completion
New Delhi: India and the United States are close to finalizing a landmark trade agreement that is expected to reshape economic ties between the two countries. External Affairs Minister S. Jaishankar announced that the “historic” deal is in its final stage of detailing and will be completed very soon. His remarks came after extensive discussions with U.S. Secretary of State Marco Rubio in Washington, D.C., highlighting renewed momentum in bilateral engagement.
The talks followed a significant announcement by U.S. President Donald Trump, who revealed that tariffs on Indian goods would be reduced sharply to 18 percent from the earlier 50 percent. This decision came after a phone conversation between President Trump and Prime Minister Narendra Modi. The reduction includes rolling back additional duties imposed earlier, marking a crucial breakthrough after months of trade-related tensions between the two nations.
According to Mr. Jaishankar, the trade deal will usher in a “new phase” in India–U.S. relations, opening up vast possibilities across multiple sectors. He described his U.S. visit as productive and positive, emphasizing that the agreement goes beyond trade and reflects deeper strategic alignment. The deal is expected to bring greater predictability to economic relations and strengthen long-term cooperation.
While the tariff reduction has been confirmed, many specifics of the agreement are yet to be made public. Union Commerce Minister Piyush Goyal has indicated that a joint statement could be released within four to five days, while the legal framework of the agreement may be finalized by mid-March. For now, clarity on several aspects, including the removal of levies linked to India’s purchase of Russian energy, remains pending.
Mr. Jaishankar also highlighted rapid progress in cooperation on critical minerals, defense, and energy. He attended a U.S.-led ministerial meeting on critical minerals, underlining the growing strategic importance of supply chains and resource security. Further engagements on strategic and defense issues are expected in the coming days.
Addressing comments by President Trump regarding India’s energy purchases, External Affairs Ministry spokesperson Randhir Jaiswal reiterated that India’s top priority is ensuring energy security for its 1.4 billion citizens. He emphasized India’s strategy of diversifying energy sources based on market conditions and international dynamics. India, he noted, remains open to exploring crude oil imports from various countries, including Venezuela, where it has had long-standing energy partnerships.
The reduced tariffs are expected to significantly benefit India’s export-oriented and labor-intensive industries. According to the government, the deal will support job creation, economic growth, and increased prosperity, while also strengthening India’s presence in the U.S. market.
