India-US trade deal first tranche ‘very near’, says Commerce Secretary

The first tranche of the India-US bilateral trade agreement is “very near”, but the government cannot put a deadline for the deal, said Commerce Secretary Rajesh Agrawal.

His remarks come at a time when the trade relations between the two countries have come under strain due to US President Donald Trump’s move to impose 50 per cent tariffs on Indian goods out of which 25 per cent is a penalty for New Delhi’s purchase of Russian oil which according to the Trump administration is being used by Moscow to fund its war in Ukraine.

"There are engagements going on, and negotiating teams are talking virtually on issues which are still pending. But we can't put a deadline. It's very near. That will happen as long as both sides are ready, they feel it is the right time to announce," said the Commerce Secretary.

His remarks come days after a US delegation led by Ambassador to India, Sergio Gor, Deputy USTR, Rick Switzer, met Commerce Minister Piyush Goyal on December 10 last year, and the Commerce Secretary on the following day, at Vanijya Bhawan, to take forward the negotiations.

‘India buying more oil from US’

The Commerce Secretary further stated that despite the high tariffs, India’s exports to the US are "still holding on to a positive trend”, adding, "It was still doing around $7 billion (monthly) despite high tariffs. We are focusing more on areas where tariffs are less, or in areas where tariffs are there, and industry has been showing resilience and holding on to the supply chains.”

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As for India’s energy imports, the Commerce Secretary said India said that India has been importing the bulk of its crude from the Middle East, adding that imports from the US have also increased. "We are buying a lot of oil from the US these days. Imports from the US have increased," he said as quoted by ANI.

‘India-Iran trade very limited’

With regard to the issue of possible trade disruptions with Iran, the Commerce Secretary said that India’s trade with the Islamic Republic was very limited. "We are looking at that. We are awaiting details, and as and when details are there, we will look into it," he added.

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Regarding the India-Canada trade talks, the Commerce Secretary said, "We are engaged. There was a positive decision to start engaging in trade talks and see how we can restart our negotiations. Both sides are engaged in finalising Terms of Reference (ToR) for a mutually beneficial trade agreement.”

The backdrop

India is currently engaged in negotiations with multiple countries to conclude trade agreements as part of its efforts to expand commerce and secure sustained economic growth.

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India and the US had earlier targeted the completion of the first tranche of an India-US bilateral trade agreement by the fall of 2025. However, recent shifts in the US trade policy environment, including the imposition of tariffs, have led to a reassessment of those timelines.

The bilateral trade agreement, formally proposed in February following directions from the leadership of both countries, aims to more than double bilateral trade from the existing $191 billion to $500 billion by 2030. The negotiations were first announced during Prime Minister Narendra Modi’s visit to Washington in February 2025.