US Commerce Secretary Howard Lutnick has signaled strong optimism about the swift finalisation of a bilateral trade deal between India and the United States, suggesting that a long-anticipated agreement may soon materialise. Speaking at the 8th US-India Strategic Partnership Forum (USISPF) Leadership Summit in Washington, Lutnick said both sides have now found “common ground that really works,” adding, “You should expect a deal... in the not-too-distant future.”
His remarks align with increasing momentum in bilateral trade negotiations, especially after US President Donald Trump’s recent move to impose reciprocal tariffs on countries with trade surpluses against the US, including India. However, those tariffs have been paused for 90 days—until July 8—except for China, providing a critical window for India and the US to hammer out a partial or interim agreement.
India has been actively pushing for full exemption from the additional 26% US tariff on its goods, which is a sticking point in the ongoing discussions. Meanwhile, President Trump’s claim that India offered the US a “tariff-free trade deal” was officially denied by New Delhi, with Indian officials clarifying that talks are still ongoing with the goal of a mutually beneficial outcome.
On India’s side, Commerce Minister Piyush Goyal has confirmed that both governments aim to grant preferential market access to each other’s industries, and that working groups are collaborating to finalise the terms. “Both countries desire to give preferential access... and we are working towards the bilateral trade agreement,” Goyal said.
The trade negotiations gained new urgency as US and Indian officials engage in back-to-back visits. A US delegation is currently in India, while last month, India’s chief negotiator Rajesh Agrawal visited Washington for four days. Goyal also recently travelled to the US to push forward the agreement.
The upcoming deal is expected to lay the foundation for a comprehensive Bilateral Trade Agreement (BTA), announced jointly by Trump and Indian Prime Minister Narendra Modi in February 2025. The goal of this larger agreement is to more than double current bilateral trade from $191 billion to $500 billion by 2030.
If the interim agreement is signed before the July 8 tariff deadline, it would mark a major breakthrough in US-India economic relations and provide significant relief to exporters and industries in both countries.
