After landmark EU pact, India sets sights on near-finish US trade deal
Sources in the Ministry of External Affairs said negotiations on the India-US trade deal progressed quietly alongside the EU talks and have now reached the final stretch. What remains, they said, is largely procedural.
A day after India wrapped up negotiations with the European Union on what has been described as the “mother of all trade deals,” attention has now shifted to another major prize, a Free Trade Agreement with the United States. Government sources indicate that talks with Washington have reached an advanced stage and a conclusion could be imminent.
‘Any day now,’ say sources
Sources in the Ministry of External Affairs said negotiations on the India-US trade deal progressed quietly alongside the EU talks and have now reached the final stretch. What remains, they said, is largely procedural. “It’s essentially the dotting of the i’s and crossing of the t’s,” a source remarked, adding that recent rounds of discussions have been notably robust and constructive.
Trump signals confidence at Davos
Momentum around the deal received a public boost in Davos on January 21, where US President Donald Trump expressed confidence that India and the US were close to sealing a strong agreement. Speaking after his address at the World Economic Forum, Trump praised Prime Minister Narendra Modi, calling him a close friend and respected leader.
“We’re going to have a good deal,” Trump said, underscoring optimism on the American side. The proposed India-US Bilateral Trade Agreement (BTA) aims to dramatically expand economic ties, with a target of raising bilateral trade from USD 191 billion to USD 500 billion by 2030. The deal was formally proposed in February 2025, following high-level political direction from both countries, and discussions were first announced during PM Modi’s visit to Washington.
‘Very near,’ says commerce secretary
India’s Commerce Secretary Rajesh Agrawal has also indicated that the first phase of the BTA is close, describing it as “very near,” though stopping short of committing to a specific timeline. The government has repeatedly emphasised that the goal is a balanced and mutually beneficial agreement.
Meanwhile, the India-EU trade agreement has drawn praise from Washington. US Trade Representative Jamieson Greer said India appears to have emerged in a strong position from the EU deal, citing expanded market access and possible mobility benefits for Indian workers.
“India comes out on top,” Greer said, pointing to the country’s competitive manufacturing base and cost advantages. Greer also addressed concerns over India’s purchase of discounted Russian oil, saying the US expects India to gradually scale it down. While acknowledging India’s progress, he noted that Washington continues to monitor the issue closely amid tightening sanctions.