India and the United States are “very near” to concluding a bilateral trade agreement, with negotiating teams engaged on almost all outstanding issues, Commerce Secretary Rajesh Agrawal said in New Delhi on Thursday. 

Agrawal said a formal announcement would be made once both sides agree the timing is right, adding that no deadline has been set. “It’s very near, but we cannot put a deadline. It will happen when both sides are ready and feel this is the right time to announce,” he said while speaking to reporters. 

Negotiations between the two countries 

Agrawal highlighted that negotiations between the two countries had never broken down and that engagement has remained continuous. He noted that bilateral trade is registering positive growth. 

The latest round of discussions follows a virtual meeting between Commerce and Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer in the last week of December. That interaction came soon after a US delegation led by Deputy USTR Rick Switzer visited India on December 10–11. 

US Ambassador to India said both sides are working to firm up the deal

In his arrival address on January 12, US Ambassador to India Sergio Gor said both sides were actively working to firm up a trade deal. His remarks came days after US Commerce Secretary Howard Lutnick suggested Washington was not in a hurry to conclude the agreement. 

Trade talks have taken place against the backdrop of strained bilateral ties, following the Trump administration’s imposition of steep 50% tariffs. Relations have also faced friction over a range of issues, including President Donald Trump’s claims related to the India-Pakistan conflict and changes in the US immigration policy. 

Despite differences, Gor has underlined the depth of the relationship, saying India and the US are bound by shared interests and high-level engagement. “Real friends can disagree, but always resolve their differences in the end,” he said. 

Responding to a question on whether the talks could fail to yield an agreement, Agrawal struck an optimistic note. “We enter all trade negotiations with a positive mindset. We are engaged with the US, and both sides feel that this can be done,” he added. 

India, EU aim to have FTA ready ahead of leaders' meet

India and the EU are "very close" to concluding negotiations on the proposed free trade agreement, with discussions underway to resolve remaining issues so that the deal is ready for announcement during the visit of top leadership later this month. Agrawal said sensitive agriculture issues have been kept out of the prospective India-EU trade pact.

India, Canada working to finalise scope for bilateral trade pact

India and Canada are also engaged in finalising the terms of reference (ToR) to formally start negotiations for a FTA, Agrawal said. The two countries were earlier negotiating a trade pact but it was paused by Canada in 2023. Now they have decided to resume talks from the beginning as lot has changed on the global trade front during these two years. "The two sides are engaged in finalising the ToR for a mutually beneficial trade agreement. We hope we will be able to complete this work soon," Agrawal said.

Meanwhile, India’s merchandise trade deficit widened marginally to $25.04 billion in December while total exports are expected to surpass $850 billion in the current financial year, according to data released by the commerce department on Thursday.