Washington:
The proposed India-US trade agreement appears closer to completion than at any point since negotiations began, with senior officials from both governments signalling that only a handful of issues remain unresolved. At the US-India Strategic Partnership Forum (USISPF) Leadership Summit in Washington, senior American and Indian officials, business leaders and former diplomats delivered perhaps the clearest picture yet of where negotiations stand and what could come next.
Taken together, their remarks suggest three things: the deal is in its final phase, both governments view it as strategically important beyond tariffs, and it is expected to become the foundation for much broader cooperation in technology, defence, energy and manufacturing.
“Last One Or 2 Per Cent”
The clearest update came from US Ambassador to India Sergio Gor, who said negotiations were nearing the finish line.
“Most of this deal is complete. There are a few items that remain from both sides, but it’s in the last one or 2 per cent of that deal,” Gor said.
He revealed that US Trade Representative Jamieson Greer had recently spent two days in New Delhi and described the past several weeks as a period of intensive negotiations.
“We’re very close,” he said, calling the agreement “a win-win situation” that would bring stability to businesses on both sides.
What’s Holding It Up?
USISPF President and CEO Mukesh Aghi told NDTV that the remaining differences are relatively narrow but politically significant.
“There are a few things left. They’re just trying to iron that out,” Aghi said.
According to Aghi, India is seeking preferential tariff treatment as Washington restructures its broader tariff regime.
“India would like to have a preferential treatment… a fair tariff. And that’s where it is kind of stuck at the moment.”
Why Both Sides Want The Deal
Former US Ambassador to India Kenneth Juster argued that the agreement should be viewed through a strategic lens, not merely a commercial one.
“We have a strong economic relationship, but I’ve long felt that having a trade deal would elevate it even further.”
“The fact is, the United States is India’s largest market, and I think it behoves India to close a trade deal with us.”
Gor made a similar point, noting that trade between the two countries has expanded from about $20 billion two decades ago to nearly $250 billion today, with both governments now targeting $500 billion by the end of the decade.
Much More Than Tariffs
Several speakers stressed that the agreement is intended to support a much broader strategic partnership.
India’s ambassador to the United States, Vinay Mohan Kwatra, said the bilateral trade target under “Mission 500” would not be achieved through tariff reductions alone.
“Trade Doesn’t Move In Isolation”
“It moves when your supply chains are better connected… when there is a strong flow of capital… when innovation, investment, manufacturing and skill mobility converge together.”
He pointed to semiconductors, biotechnology, artificial intelligence and advanced manufacturing as areas where the two countries are already building long-term partnerships.
China Remains Part Of The Equation
The strategic backdrop to the negotiations was also evident throughout the summit.
Jacob Helberg, the US Under Secretary of State for Economic Growth, Energy and the Environment, said Washington wanted to diversify critical supply chains beyond China and viewed India as an essential partner.
He described India as “the only country on earth that fundamentally rivals China” in engineering talent and said the two countries should jointly build an AI developer ecosystem spanning “minerals to magnets to models”.
Aghi said that trend was already visible.
“De-risking from China is a big issue for US companies.”
“India plays that pivotal role, and we are seeing company after company going that direction.”
What Happens Next?
No timeline has been officially announced, but officials repeatedly suggested the negotiations are approaching their conclusion.
“I think if we can get the trade deal done, the momentum will pick up,” Aghi told NDTV.
“It will happen, if not by 2030, 2031 or 2032, because we are seeing growth happening between the two countries.”
For now, the message emerging from Washington is consistent across officials, diplomats and business leaders: the difficult negotiating work appears largely complete. The remaining issues are limited, and both governments see the agreement not simply as a trade pact but as the economic foundation of a broader strategic partnership that is expected to define India-US relations for years to come.
