Piyush Goyal says India ‘very close’ to trade deal with US, but ‘won’t move ahead unless it secures…’

India and the United States are on the verge of finalising a trade agreement, India’s Commerce and Industry Minister, Piyush Goyal, said in London on Thursday.

New Delhi wants to ensure it has a competitive advantage over its peers and cannot enter the deal until that framework is finalised, he said, as reported by Reuters.

As reported by Bloomberg, the United States and India wrapped up a round of trade negotiations this week, although neither country disclosed whether key differences that had delayed an interim deal had been resolved.

US-India conclude latest trade talks

US Trade Representative Jamieson Greer visited India for two days of discussions that concluded on Wednesday, as both sides sought to push forward trade talks that have been ongoing for several months.

The visit followed a meeting between US President Donald Trump and Indian Prime Minister Narendra Modi on the sidelines of the Group of Seven Summit, where Trump said the two countries were “very close” to reaching an agreement.

“We reviewed progress of the ongoing India–US trade discussions and explored avenues to further deepen our economic partnership,” India’s Commerce and Industry Minister Piyush Goyal said on X on Wednesday, following talks with Greer.

In a separate statement, India’s trade ministry said both sides are seeking a “balanced” agreement that delivers “tangible benefits for businesses, farmers, workers and consumers in both countries.” The officials discussed enhanced market access, digital trade, supply chain resilience and reduction of non-tariff barriers in the latest round of talks, according to the statement, as reported by Bloomberg.

The talks highlight the increasing significance of economic ties between the world’s largest and most populous democracies. The United States is India’s second-largest trading partner and its biggest export destination.

A trade agreement could help protect Indian exporters from the risk of higher US tariffs while supporting Prime Minister Narendra Modi’s efforts to establish India as a global manufacturing hub. For Washington, such a deal would provide greater access to one of the world’s fastest-growing major economies and further its strategy of reducing supply-chain dependence on China.

India’s exports to the United States rose to $87.3 billion in the financial year ending March, while imports from the US increased 17.2% to $53.48 billion.

In February, India and the US unveiled a trade framework that lowered tariffs on Indian goods to 18% from 50%. However, days later, the US Supreme Court invalidated President Donald Trump’s broad global tariff policy, creating fresh uncertainty over the timeline for implementing the agreement.

Here's what Asia Society Policy Institute experts say

Wendy Cutler, Senior Vice President at the Asia Society Policy Institute (ASPI), told ANI that "Despite substantial progress made in recent meetings, concluding a trade deal with India is proving illusive."

She added, "Each side has its own priorities and redlines which continue to prevent a successful conclusion. Moreover, developments over the last year have produced a serious trust deficit on the part of Delhi, which makes wrapping things up more complicated."

According to Cutler, India is seeking greater clarity on tariff arrangements before finalising any agreement. She said, “India very much wants a preferential tariff edge over its competitors, so it is in no hurry to conclude until there is further clarity on tariff rates and product exclusions. Moreover, it is seeking assurances from Washington on no further tariff hikes, which most likely is a bridge to far for the Trump team.”

Farwa Aamer, Director of South Asia Initiatives at ASPI, said sustained engagement from both governments points to the possibility of an agreement, though challenges remain.

She said, "The sustained effort from both sides shows promise toward the deal, but not without a fair share of speed bumps and lingering uncertainty."

She noted that broader geopolitical factors have influenced the negotiations. She added, "The wider geopolitical divergences between New Delhi and Washington have also impacted the way at least India has been coming to the negotiating table, cooperative but more assertive. There is also a lot of domestic pressure on the Indian leadership to secure a balanced and fair deal so that tracks."

(With inputs from agencies)