The United States signalled that its long-delayed trade negotiations with India are finally gaining traction, with a senior administration official noting that recent talks have produced “a lot of positive developments.” The shift comes after months of strained exchanges over tariffs and India’s purchase of discounted Russian oil, issues that had stalled meaningful progress.
According to the official, Washington is now working with New Delhi on two closely linked fronts: a reciprocal trade agreement aimed at balancing market access, and ongoing discussions about India’s Russian oil imports. The official said both areas had shown improvement, adding that negotiators are hoping for concrete results “before the end of the year,” though significant work remains.
The potential trade deal seeks to resolve long-standing disputes over tariffs on US agricultural and industrial goods, India’s push for the restoration of preferential trade benefits, and expanded opportunities for Indian service-sector professionals in the United States.
The remarks coincided with the White House announcing preliminary trade agreements with Argentina, Ecuador, El Salvador, and Guatemala—deals described as part of a broader shift toward focused bilateral partnerships rather than large multilateral frameworks. The official also cited constructive engagements with Vietnam, Indonesia, and Switzerland as part of this strategy.
Momentum has increased following the swearing-in of Sergio Gor as the new US ambassador to India. At the ceremony, President Donald Trump suggested that tariff reductions on Indian imports could be part of a forthcoming breakthrough, noting that both sides were “very close to something that could make a real difference.”
Past attempts to finalise a comprehensive US–India trade deal have faltered over disagreements on tariffs, data localisation, and e-commerce regulations. This round of negotiations, however, appears to be moving forward with a more pragmatic approach from both governments.
