India, US agree on trade deal terms.
India, U.S. Finalise Terms for First Phase of Trade Deal; Talks Advance Amid Tariff Pause
The development comes shortly after U.S. President Donald Trump announced a 90-day pause on most tariff hikes for key trading partners, including India. The pause, announced on Wednesday, is seen as a temporary relief measure for Indian exporters who have been bracing for a more protectionist American trade policy. However, while the pause applies broadly to U.S. allies, China was excluded from the relief, facing further increases in levies.
Here are four key takeaways from the ongoing India-U.S. trade developments:
1. Terms of Reference for First-Phase Talks Finalised
The Indian trade official, who requested anonymity due to the sensitivity of the discussions, confirmed that both countries have successfully finalised the terms of reference that will guide the dialogue for the initial phase of the trade deal. This marks a crucial step forward in formalising the negotiation process. The terms provide a framework for structured discussions, outlining the issues to be addressed and the timeline within which both sides aim to reach preliminary agreements.
The official stated that there is strong momentum behind the talks and expressed optimism about reaching a substantial deal within the 90-day window provided by President Trump’s tariff pause. compared to other countries,” the official noted, highlighting that multiple opportunities exist for collaboration.
2. Aiming for $500 Billion in Bilateral Trade by 2030
India and the United States agreed in February to launch discussions aimed at concluding the first phase of a trade deal by the end of 2025. The current trade volume between the two countries stands at roughly $190 billion, making the 2030 target ambitious but attainable, according to analysts.
The agreed roadmap is expected to cover areas such as market access, digital trade, tariff reduction, intellectual property rights, and regulatory harmonisation, with an eye toward strengthening economic cooperation and reducing trade barriers.
3. Virtual Talks and Delegation-Level Visits Planned
While much of the discussion will continue virtually, the official also confirmed that there will likely be in-person delegation-level meetings between Indian and American negotiators as the talks progress. These engagements are expected to occur both in New Delhi and Washington, D.C., and will be essential to ironing out contentious issues and finalising early deliverables.
This hybrid negotiation model reflects a pragmatic approach in an increasingly digital diplomatic environment while also acknowledging the importance of face-to-face diplomacy in complex trade matters.
4. India’s Message: A Trusted Trade Partner
This message underscores the broader strategic objective of strengthening India’s role in global supply chains and enhancing its credibility in international trade.
The official also mentioned that India was keen to capitalise on the opportunity presented by the U.S. tariff pause, moving quickly to deepen engagement and secure early wins that benefit both economies.
are working toward building a long-term, mutually beneficial relationship that reflects their growing economic and strategic ties. The next 90 days will be critical in determining whether that vision begins to materialise.