US Signals India Trade Deal Likely Before Year-End as Talks Show Encouraging Progress

Positive Momentum in India-US Trade Talks

The United States has indicated that a long-awaited trade deal with India could be finalized before the end of 2025. Officials say that recent negotiations have shown significant progress, raising hopes of a formal agreement soon.

According to news agency ANI, the talks have advanced after the US government softened its stance on India’s Russian oil imports, which was previously a major point of contention.

Two Key Issues in Focus

A senior US official explained that discussions are centered on two main issues:

Reciprocal Trade Agreement – Aimed at balancing tariffs, expanding market access, and addressing long-standing trade concerns. These include duties on American agricultural and industrial goods, restoring trade preferences, and providing greater access for Indian services professionals in the US.
Russian Oil Purchases – India’s continued imports of Russian oil have been a sensitive issue. India maintains that its energy sourcing decisions are guided by national interests and the need to protect Indian consumers. Recent discussions have reportedly seen market improvements, reducing tensions.

Encouraging Progress and Timeline

The official noted that while more work remains, the pace of negotiations has been encouraging. “We’ve seen positive developments recently, and there’s potential for more before the end of the year,” the official said.

The comments suggest that both nations are committed to strengthening bilateral trade, with an agreement potentially coming by late 2025.

India-US Trade Figures and Ambitions

Bilateral trade between India and the US reached around USD 190 billion in 2024, with both countries aiming to significantly increase commerce in the coming years. Analysts say a successful trade deal could boost market access, enhance economic ties, and create new opportunities for businesses in both countries.