India and US may agree on interim trade pact by June 25 : Reports
NEW DELHI : India and the US might agree on an interim trade pact by June 25, as per a report that quoted sources. This comes after sources had earlier said that the trade pact is likely by July 8.
According to a report in news agency PTI, the sources said, “Talks are moving. Things are on track.”
This development comes after White House economic adviser Kevin Hassett indicated that India is among a select group with agreements “close to the finish line.” US President Donald Trump had earlier indicated that they were not in a rush and a trade deal would be finalised if it is mutually beneficial.
Special Secretary in the Department of Commerce Rajesh Agrawal, who is India’s chief negotiator, concluded his four-day visit to Washington last week, where he held talks with his US counterpart. Commerce and Industry Minister Shri Piyush Goyal also concluded his Washington visit last week, which is believed to have given a push to the talks. Goyal also met US Commerce Secretary Howard Lutnick twice during his visit.
Earlier reports also stated that India is pushing for a full exemption of the 26 per cent reciprocal tariff that the US had imposed on domestic goods. The pause on the reciprocal tariff would be suspended after July 9.
Both the countries are aiming to conclude the first phase of the bilateral trade agreement by September-October this year.
The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion. The US accounts for about 18 per cent of India’s total goods exports, 6.22 per cent of imports, and 10.73 per cent of the country’s total merchandise trade.
India recorded a trade surplus of $41.18 billion in goods with the US in 2024-25. This surplus has grown steadily from $22.73 billion in 2020-21 to $35.32 billion in 2023-24.
Both countries aim to more than double bilateral trade to $500 billion by 2030.
India is seeking duty concessions for labour-intensive sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact. The US, in turn, wants duty concessions on certain industrial goods, automobiles—especially electric vehicles—wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops.
