India is actively working to finalise a new trade agreement with the United States, Finance Minister Nirmala Sitharaman announced on Monday as she embarked on a crucial five-day visit to America.
During her engagements with the International Monetary Fund (IMF), World Bank, and G20 finance ministers, Sitharaman expressed optimism about sealing the first phase of the trade deal by autumn. The agreement comes at a pivotal moment as India seeks to sidestep impending US tariff hikes while strengthening economic ties with its largest trading partner.
In 2024, the US-India bilateral trade surged to $129 billion, with India maintaining a $45.7 billion trade surplus. Officials have indicated that India’s Chief Trade Negotiator, Rajesh Agrawal, will also visit the US for further discussions within the 90-day tariff relief window announced by President Donald Trump.
In parallel, US Vice President JD Vance has arrived in India for high-level talks with Prime Minister Narendra Modi, set to assess ongoing bilateral agreements.
As India considers reducing tariffs on over 50% of its imports from the US, experts anticipate significant shifts in trade dynamics. If successful, this agreement could reshape India’s economic future, making it a defining moment in Indo-US relations.
