India and the United States may be just a month away from finalizing a trade deal, according to a report by Business Today. The two sides entered fresh rounds of negotiations after Washington held high-level trade discussions in New Delhi aimed at revisiting the proposed bilateral agreement, following recent changes in US tariff policy that disrupted the earlier framework.
Negotiation Timeline and July 24 Deadline
Commerce and Industry Minister Piyush Goyal met US Trade Representative Jamieson Greer in New Delhi as both sides pushed to finalise an interim trade pact ahead of July 24, when Washington's temporary 10% tariff on imports from trading partners is set to lapse, the report stated. In a post on X, Goyal said, “Warm welcome to Jamieson Greer, Sergio Gor and their delegation to department of commerce. Looking forward to productive discussions on the bilateral trade agreement between (India & US).” Greer's two-day visit comes soon after Prime Minister Narendra Modi and US President Donald Trump met on the sidelines of the G7 summit in France on June 17, a meeting that injected renewed momentum into ongoing negotiations.
The US Embassy in India said in a social media post that the trade partnership would benefit both countries: “Stronger ties create American manufacturing jobs while supporting India's growth as the world's largest democracy. From energy security to tech talent exchanges, we're building the future together.” In another post, the embassy said, “@USTradeRep Jamieson Greer and Indian Minister of Commerce and Industry @PiyushGoyal met in New Delhi today to advance negotiations on the Interim Agreement launched by President Trump and Prime Minister Modi.” It added that the US is focused on securing a fair and reciprocal trade deal that expands market access for American exporters while delivering gains for both sides.
Key Provisions Under Discussion
The discussions focused on reworking a framework agreement announced in February, which had been built on tariff commitments later affected by a US Supreme Court ruling that struck down sweeping tariffs announced by Trump, according to the report. For India, securing preferential tariff treatment remains a key priority after changes in US tariff policy reduced an expected advantage over competing economies, including Vietnam and other ASEAN nations. Under the February framework, the US had agreed to lower tariffs on Indian goods to 18%, below rates applied to several competing exporters.
India had also proposed reducing or eliminating tariffs on a range of US industrial and agricultural goods, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fruits, soybean oil, wine and spirits, among others. Additionally, India indicated plans for large-scale purchases from the US over the next five years worth $500 billion, covering energy products, aircraft and parts, precious metals, technology goods, and coking coal.
| US Offer (February Framework) | India's Proposed Tariff Concessions | India's $500 Billion Purchase Plan |
|---|---|---|
| Tariffs on Indian goods lowered to 18% | Reduce/eliminate tariffs on dried distillers’ grains, red sorghum, tree nuts, fruits, soybean oil, wine and spirits | Energy products, aircraft & parts, precious metals, technology goods, coking coal |
Pending Hurdles
In February, both sides had outlined the contours of the first phase of the agreement, based on tariff assumptions that were later altered. On February 20, the US Supreme Court struck down sweeping tariffs, leading the US administration to impose a temporary 10% tariff under Section 122 of the Trade Act on all countries for 150 days starting February 24, which is due to expire on July 24, the report said. The February joint statement also includes a clause allowing either country to modify commitments if tariff conditions change.
Finance Minister Nirmala Sitharaman also held a separate meeting in New Delhi with the US delegation led by Jamieson Greer. According to the finance ministry, both sides exchanged views on strengthening bilateral trade and economic cooperation, with a focus on new opportunities for growth and deeper commercial engagement. The meeting at Vanijya Bhawan, the commerce ministry headquarters, also included Commerce Secretary Rajesh Agrawal and India’s chief negotiator Darpan Jain, sources said. It followed earlier chief negotiator-level talks held in New Delhi between June 2 and June 4.
For import and export professionals, the evolving tariff landscape means that the interim deal could provide significant market access gains if concluded before the July 24 deadline. India's $500 billion purchase commitment signals a major shift in bilateral trade flows, while the US Supreme Court ruling and subsequent Section 122 tariffs add complexity to the negotiation framework.
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