India, US Move Closer to Trade Deal as Trump, Modi Push for Early Conclusion
The United States and India have stepped up efforts to finalize the bilateral trade agreement, with US President Donald Trump declaring that both sides are “very close” to reaching a deal following talks with Prime Minister Narendra Modi on the sidelines of the G7 Summit in France.
Speaking to reporters after the meeting, Trump expressed confidence that negotiations were nearing completion. “We had some very good conversations with Prime Minister Modi and India. We’re working on trade deals. A lot of things are happening between the United States and India,” Trump said, describing Modi as “one of the toughest negotiators” while emphasizing the strong personal relationship between the two leaders.
The remarks come amid intensified negotiations between Washington and New Delhi over a broader Bilateral Trade Agreement (BTA), which both governments view as critical to expanding market access, strengthening supply chains, and deepening economic cooperation. According to India’s Ministry of External Affairs (MEA), Modi and Trump directed their respective teams to work toward a “balanced, mutually beneficial and commercially meaningful” agreement at the earliest.
Trade talks have gained momentum in recent weeks following a series of negotiations between Indian officials and representatives from the Office of the United States Trade Representative (USTR). Indian Commerce and Industry Minister Piyush Goyal recently indicated that the first tranche of the agreement could be implemented by mid-July, with most major issues already addressed.
The current discussions build upon the interim trade framework announced earlier this year, under which the United States reduced reciprocal tariffs on Indian goods to 18 percent and both countries committed to pursuing a broader trade pact. The framework also outlined measures to improve market access, address non-tariff barriers, enhance digital trade cooperation, and strengthen supply-chain resilience.
According to reports, negotiators are keen to conclude an interim arrangement before the expiry of the US administration’s temporary tariff measures. The agreement is expected to provide Indian exporters with improved access to the American market and could offer a competitive advantage over regional manufacturing rivals.
Beyond trade, the Modi-Trump meeting also covered defence cooperation, regional security, and the safety of Indian seafarers operating in the Gulf region. Trump reiterated Washington’s commitment to strengthening strategic ties with India and indicated that he intends to visit the country in the future.
The United States remains one of India’s most important economic partners. Bilateral trade has expanded significantly over the past decade, and both governments have set an ambitious target of increasing trade volumes to US$500 billion in the coming years. Officials on both sides believe that a comprehensive trade agreement could unlock new opportunities in manufacturing, technology, energy, agriculture, and digital services while reinforcing the broader India-US strategic partnership.
