The United States has signaled that talks on a long awaited trade agreement with India are moving forward. A senior administration official told ANI that recent discussions have seen “a lot of positive developments.” In recent weeks, Washington has softened its earlier confrontational stance over India’s purchases of Russian oil, showing a willingness to engage constructively after months of stalled negotiations.
The official explained that discussions with New Delhi are focusing on two main areas: a reciprocal trade agreement and concerns over India’s imports of Russian oil. “We’ve had a lot of positive developments with them recently,” the official said. “We have two things going on the reciprocal trade talks and the Russian oil issue, where we’ve seen some market improvements.”
While noting that significant work remains, the official expressed optimism that progress could be achieved “before the end of the year,” calling the current pace “encouraging.”
The proposed trade deal aims to balance tariffs and expand market access for both countries, addressing long standing issues such as duties on American agricultural and industrial products, India’s request for restored trade preferences, and greater access for Indian service professionals in the United States.
These comments coincided with the White House announcing preliminary trade agreements with Argentina, El Salvador, Ecuador, and Guatemala, which will lower tariffs on goods not available in the United States. Officials described these deals as part of a broader effort to build constructive bilateral trade relationships.
The official also highlighted recent cooperation with Vietnam, Indonesia, and Switzerland, reflecting a move toward targeted agreements rather than broad multilateral frameworks. “We’ve been having quite constructive conversations across several regions,” they said.
Renewed momentum comes as Sergio Gor, a close associate of former President Trump, assumes his role as the new US ambassador to India. At his swearing in ceremony, Trump suggested that tariff reductions on Indian imports could be part of an upcoming trade breakthrough. “We are very close to something that could make a real difference,” he said.
A final agreement would tackle several unresolved issues between the world’s largest and fifth largest economies, including US concerns over India’s tariffs, India’s request for restored preferential trade status, and technology transfer protections. Past efforts have stalled over disagreements on tariffs, data localization, and e commerce regulations, but both sides now appear to be approaching the talks with a more pragmatic mindset.
