India-US Trade Deal Nears Completion as Modi-Trump Ties Strengthen

1st July 2025 at 8:43 AM

1 minute read

All eyes will be on the upcoming trade deal between Washington and Delhi as Indian delegates led by Commerce and Industry Minister Piyush Goyal will be travelling across the Atlantic to meet their counterparts for a bilateral trade agreement (BTA).

Washington – The White House has announced that a trade agreement between the United States and India is close to being finalized, underscoring the robust relationship between President Donald Trump and Prime Minister Narendra Modi. According to White House Press Secretary Karoline Leavitt, the two leaders share a strong bond, with India regarded as a vital strategic partner in the Asia-Pacific region.

Leavitt’s comments came in response to a query from ANI about the U.S. perspective on China’s influence in the Indo-Pacific. She emphasized India’s importance as an ally and highlighted the positive dynamic between Trump and Modi, which is expected to persist. The remarks coincided with External Affairs Minister S. Jaishankar’s visit to the U.S. for the QUAD Foreign Ministers’ Meeting, involving Australia, India, Japan, and the U.S., aimed at fostering a free and resilient Indo-Pacific. The QUAD alliance, initially formed to coordinate humanitarian efforts after the 2004 Indian Ocean tsunami, continues to play a key role in regional stability.

An Indian delegation, led by Chief Negotiator and Special Secretary for Commerce Rajesh Agrawal, recently arrived in Washington for a two-day discussion that began last week. The talks focused on resolving existing trade disputes and laying the groundwork for an interim Bilateral Trade Agreement (BTA) expected by September or October 2025. Following this initial phase, both nations plan to negotiate a comprehensive free trade agreement, with a goal of doubling bilateral trade to $500 billion by 2030. India has urged the U.S. to eliminate current and planned retaliatory tariffs, including a 26% duty comprising a 10% tariff effective since April 5 and an additional 16% set to begin on July 9.

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Sources familiar with the negotiations, as reported by Hindustan Times, indicate that most elements of a preliminary deal have been agreed upon, with final decisions now resting with political leaders to address remaining differences. On June 18, it was confirmed that Trump accepted Modi’s invitation to attend the upcoming QUAD Summit in New Delhi, further signaling the strengthening of U.S.-India ties.