A breakthrough India-US trade deal may be finalized soon, says US Commerce Secretary Howard Lutnick. Here's what it means for bilateral trade and global partnerships.
India-US Trade Agreement Likely in "Not Too Distant Future," Says Top US Official
In a major development for global trade, US Commerce Secretary Howard Lutnick has indicated that a long-anticipated India-US trade deal could be finalized in the "not too distant future", as both nations have reached a strategic understanding that benefits their economies.
The announcement was made during Lutnick’s keynote address at the eighth edition of the US-India Strategic Partnership Forum (USISPF) in Washington on June 1, 2025, where he highlighted the progress in bilateral negotiations and the mutual commitment to a comprehensive trade agreement.
“You should expect a deal between the United States and India in the not too distant future because I think we found a place that really works for both countries,” Lutnick said.
Final Round of Talks in New Delhi
A high-level US delegation is currently in New Delhi to conduct the final round of face-to-face negotiations, expected to conclude by the end of June 2025. This interim agreement would mark a significant step towards a broader, long-term trade partnership between the two democratic giants.
Indian Commerce and Industry Minister Piyush Goyal, speaking from France, also expressed optimism:
“Both countries are committed to work together, and both desire to give preferential access to each other’s businesses. We are working towards the bilateral trade agreement.”
India May Get Better Terms as Early Mover
Lutnick emphasized that countries who engage early are likely to receive more favorable terms, and India’s proactive approach could result in a strategic advantage.
“Earlier countries get a better deal... India is trying to come in earlier than that,” Lutnick noted, referring to the upcoming July 4–9 timeline when many other countries are expected to engage in similar discussions.
The proposed deal, originally announced in February 2025 by Prime Minister Narendra Modi and former US President Donald Trump, aims to more than double bilateral trade from $191 billion to $500 billion by 2030.
A Multi-Sectoral Trade Pact in the Making
The trade agreement is envisioned as a multi-sectoral pact, covering preferential tariffs, market access, technology exchange, and supply chain resilience. New Delhi is pushing for a complete exemption from the 26% reciprocal tariff previously imposed on Indian goods by the US administration.
As per government insiders, the first phase of the deal is expected to be finalized by September–October 2025, setting the groundwork for an expansive partnership that touches industries such as pharmaceuticals, digital trade, green energy, defense, and textiles.
Global Leadership Recognition at USISPF
The USISPF forum also served as a platform to recognize top business leaders who have contributed to strengthening economic ties among QUAD nations (Australia, India, Japan, and the US).
Recipients of the 2025 Global Leadership Awards included:
- Arvind Krishna, Chairman of IBM
- Kumar Mangalam Birla, Chairman of Aditya Birla Group
- Toshiaki Higashihara, Executive Chairman of Hitachi
Their contributions underscore the growing synergy among QUAD economies and signal strong support for multilateral cooperation in trade and innovation.
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