An unnamed government official told reporters on 24 October 2025 that both sides are now “converging on most of the issues” and that only a few differences remain to be ironed out. Negotiators have reportedly completed at least five rounds of talks for the first phase of the agreement.
The proposed pact covers a broad spectrum including tariff reductions, market access and non-tariff barriers. Analysts say the US is keen on access in agriculture, dairy and energy, while India remains cautious about protecting its small-farm sector.
The deal would also address pressing issues around India’s import of discounted Russian crude and the resulting US tariffs on Indian exports. The US had imposed steep duties-up to 50 %-on some Indian goods, citing India’s continuing purchase of Russian oil.
India’s Cautious Approach
This stance signals that India will prioritise long-term national interest over quick signatures. New Delhi is simultaneously engaging in trade negotiations with the European Union and other partners.
What Happens Next?
With most major contentions reportedly resolved, both governments are moving to legal-text drafting of the agreement. Final endorsement may come at a senior political level before formal signing.
The deal aims to bolster bilateral trade volumes- India and the US have previously set an ambitious target of more than doubling two-way trade to US$500 billion by 2030.
Implications for Indian Industry and Exporters
If concluded, the deal could offer relief to Indian exporters facing US tariffs while opening access to key American markets. At the same time, Indian producers will be vigilant about safeguards for vulnerable sectors like agriculture and dairy.
For the US side, addressing non-tariff barriers in India and ensuring market access for American goods remain priorities. Observers caution that even a completed deal may take time to deliver full benefits.