India and the United States have resolved the bulk of issues regarding a proposed trade deal, with External Affairs Minister S Jaishankar stating that negotiations are now in their final stretch. Speaking at the Hindustan Times Leadership Summit on Saturday, Jaishankar indicated that the agreement could be finalized soon, as both nations work to address the remaining concerns.
Jaishankar noted that the final hurdles in the negotiation process are largely driven by changes on the American side rather than issues originating from New Delhi. He emphasized that the government is seeking an agreement that is both balanced and beneficial, providing India with a comparative advantage over other comparable economies. According to the Minister, the painstaking process of reviewing the deal tariff line by tariff line is nearly complete.
The two countries have been in formal discussions since early 2025, aiming to resolve ongoing tariff friction, eliminate non-tariff barriers, and improve bilateral market access. While acknowledging that the process requires patience, Jaishankar maintained that the effort to secure a favorable deal is necessary given the significance of the US market for India. He also noted that the broader context of the relationship involves strategic assessments of trade pacts, marking a shift from earlier agreements with other Asian economies.
Key facts
- Negotiations for the bilateral trade pact have been ongoing since early 2025.
- External Affairs Minister S Jaishankar stated that the bulk of issues have been resolved.
- The current focus is on addressing the final stretch of concerns in the agreement.
- The US serves as India’s largest market, according to the External Affairs Minister.
Why it matters
Securing this trade deal is expected to provide India with improved market access and a competitive edge over similar economies. The conclusion of these talks is anticipated to impact the broader trajectory of bilateral ties between the two nations.
Background
India and the US have been engaged in discussions to address tariff issues and boost bilateral market access as part of a long-term strategy to strengthen economic cooperation.
Source: Economic Times, Hindustan Times
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