ndia and the United States are moving closer to concluding an interim trade agreement, with US Ambassador Sergio Gor indicating that only a small portion of the negotiations remains unresolved and both sides are working towards finalising the deal in the coming weeks or months.

Speaking at the Indian Institute of Technology (IIT) Delhi, Gor said recent negotiations had narrowed differences significantly, with teams from both countries continuing discussions aimed at completing the proposed agreement.

“Our current interim trade agreement is on the table for us to finalise and that will unlock prosperity for both of our countries. Just last week, India had sent a team to Washington DC to finalise the last one per cent of that trade deal,” Gor said.

The latest round of negotiations comes amid heightened scrutiny of the proposed Bilateral Trade agreement, which has increasingly acquired a political dimension alongside its economic significance. Officials from both countries prepare for another round of talks in New Delhi in the coming week.

A trade deal years in the making

The proposed interim pact is widely viewed as an important milestone in the evolving economic relationship between the world's two largest democracies. The framework for the agreement was first outlined in February, when Prime Minister Narendra Modi and US President Donald Trump announced plans to deepen bilateral economic engagement under the broader US-India COMPACT initiative.

The agreement assumes significance at a time when both countries are seeking to strengthen supply-chain partnerships, expand market access and increase cooperation in strategic sectors such as energy, advanced manufacturing, critical technologies and digital trade.

“Next week, we will welcome a US delegation here to continue those talks. We fully expect that the trade deal will be signed over the next few weeks and months,” Gor said.

Bilateral trade gathers momentum

Trade ties between India and the US have expanded steadily over the past two decades, making Washington one of New Delhi’s largest trading partners. Bilateral trade in goods and services has crossed the $220-billion mark, with growth increasingly driven by high-value sectors rather than traditional merchandise trade.

“Today, the US is one of India's largest trading partners, and India is among the top trading partners of the US. Importantly, this growth is increasingly driven by innovation, investment and high value sectors, from digital trade and advanced manufacturing to energy and emerging technologies,” Gor said.

He added that expanding economic engagement could create significant opportunities for businesses and workers in both countries.

Strategic partnership beyond trade

The trade negotiations are unfolding alongside a broader strategic partnership that spans technology, defence, energy and investment. The Trump administration’s TRUST framework, unveiled at the start of the President’s second term, has identified India as one of the emerging centres of power in an increasingly multipolar global economy.

“Our investment in trade expansion offers transformative potential. President Trump's goal is to facilitate bilateral trade in a way that creates unprecedented opportunities for American businesses and workers,” Gor said.

He noted that India’s rapidly expanding economy and infrastructure requirements align closely with American strengths in energy, aviation, research and development, advanced manufacturing and digital infrastructure, creating scope for deeper collaboration well beyond the proposed interim trade pact.