India-US Trade Deal: First Phase Expected by End of 2025
India and the United States are poised to sign the first phase of their bilateral trade agreement (BTA) by the end of 2025, according to Commerce Secretary Rajesh Agarwal. The announcement was made during the FICCI Annual General Meeting on November 28, 2025, with negotiations progressing despite shifting global trade dynamics.
Key Developments
- First tranche of India-US BTA expected to be signed within 2025.
- Framework discussions are at an advanced stage with most issues resolved.
- Negotiations continue despite US reciprocal tariffs and geopolitical changes.
Optimistic Timeline Amid Challenges
Commerce Secretary Rajesh Agarwal expressed strong optimism about concluding the initial agreement this calendar year. “I think our expectations, we are very optimistic and very hopeful that we should find a solution within this calendar year,” Agarwal stated, as reported by ANI.
No Fixed Deadlines in Trade Negotiations
Agarwal cautioned that trade negotiations remain unpredictable, making final deadlines difficult to announce. “With any trade negotiations, the final deadlines cannot be because even if there is one sticking point or one sticking issue which is in the mind of even one of the partners, the trade deal may not meet that deadline,” he explained.
The original target of completing the first tranche by fall 2025 was affected by changes in the global trade landscape, particularly US reciprocal tariffs imposed on trading partners.
Parallel Negotiations Underway
India and the US are currently engaged in two parallel tracks: a comprehensive Bilateral Trade Agreement and an immediate Framework Trade Deal. The framework discussions have reached an advanced stage, with negotiators close to finalizing terms.
“We are close, we have tried to iron out most of the issues. Now it is only matter of time when this decision has to be taken, that when the two countries have to find the right landing zone to announce it,” Agarwal confirmed.
Path to Comprehensive Agreement
The Commerce Secretary emphasized that achieving complete elimination of reciprocal tariffs will require more time as part of the full BTA process. “I think we need to find pathway for complete elimination of reciprocal tariff in our process of doing (full) BTA. So I think that will take a bit of time, and we’ll not hurry up those we are working on various aspects of BTA,” he stated.
Agarwal expressed confidence that the trade deal could be achieved “in a very short while,” with both countries continuing negotiations despite the 50% tariffs imposed by US President Donald Trump.
