New Delhi, May 20 — India is pursuing a three-phase trade deal with the United States and expects to finalize an interim agreement ahead of July, when President Donald Trump’s reciprocal tariffs are set to take effect, according to officials familiar with the ongoing discussions.
The interim deal is expected to address key areas such as market access for industrial goods, select agricultural products, and some non-tariff barriers, including quality control standards. The officials, who spoke on condition of anonymity due to the sensitive nature of the talks, said discussions are progressing but noted that the US side has not yet formally agreed to the phased approach.
Commerce Minister Piyush Goyal is currently in Washington on a four-day visit and is scheduled to meet US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to push the negotiations forward.
The proposed second phase of the agreement, likely between September and November, could cover a broader framework encompassing 19 focus areas that both nations had agreed upon in April. This timeline may coincide with President Trump’s anticipated visit to India for the Quad leaders’ summit.
A final and more comprehensive deal may follow next year, pending approval from the US Congress.
India began its trade negotiations with the US shortly after Prime Minister Narendra Modi’s February visit to the White House. Both leaders expressed a commitment to boosting trade and aimed to conclude the first tranche by fall. Since then, India has signaled its openness to securing “early mutual wins” before the deadline.
However, signs of strain have surfaced recently. India has threatened retaliatory tariffs on US imports, while Trump claimed India had offered to cut tariffs to zero — a statement Indian officials have not confirmed.
Tensions have also flared over Trump’s assertions that he used trade as leverage to negotiate a ceasefire between India and Pakistan during a past military standoff, claims that New Delhi has strongly denied.