India And US Trade Talks Move Closer To Final Pact

India and the United States are nearing a trade agreement, but officials have avoided setting a firm date for signing the final pact.

On Tuesday 13 October 2026, External Affairs Minister S Jaishankar announced in New Delhi that trade negotiations between India and the United States are moving forward well. Speaking at an economic forum in the capital, he said the talks were heading towards a landing point. However, he declined to promise a specific date for an agreement. Jaishankar noted that in today's world, it is better not to make public predictions. He added that the Indian government feels very encouraged by the current progress. According to Jaishankar, Commerce Minister Piyush Goyal is working closely with US Trade Representative Jamieson Greer to resolve remaining disagreements. The announcement comes after months of complex bargaining over duties and market access. Earlier this month, Finance Minister Nirmala Sitharaman stated that negotiations had reached a plateau where giving further concessions would be extremely difficult. Officials on both sides are now trying to settle these sticking points to conclude a workable trade pact.

Why it matters

Trade rules sound abstract, but they directly affect ordinary workers, factory employees, and farming families across India. The United States is India's largest export market. Many labour-heavy sectors rely heavily on American buyers. These include textiles, gems and jewellery, engineering goods, and seafood. Clear and stable tariffs—which are taxes charged on goods crossing borders—are essential for small and medium businesses to secure advance orders and protect jobs. At the same time, any trade deal brings serious concerns for Indian agriculture. For years, farmers' groups have strongly opposed opening Indian agriculture to cheaper US produce, fearing that foreign imports could crash local crop prices and hurt rural livelihoods. In February, an interim framework saw Washington slash its reciprocal tariff on Indian products from 50 per cent to 18 per cent. The US also dropped a 25 per cent penalty on India's purchases of Russian oil, while India agreed to cut duties on US industrial and farm items.

Key facts on the talks

• On 20 February, the US Supreme Court struck down Washington's reciprocal tariffs, prompting the US government to impose a temporary 10 per cent tariff on all countries.

• Commerce Minister Piyush Goyal said on 10 October that circumstances have changed and the final agreement will reflect these new realities.

• Finance Minister Nirmala Sitharaman recently warned that the talks reached a stage where offering more concessions would be very difficult for India.

• External Affairs Minister Jaishankar also pointed out that Indian businesses do not get a level playing field in China.

• India is actively pursuing other trade ties, with negotiations ongoing with Canada and talks starting with Mexico this week.

• Trade ministers from the United Kingdom and Canada are also scheduled to visit New Delhi soon for bilateral discussions.

What's next

Commerce Minister Piyush Goyal and US Trade Representative Jamieson Greer will continue their discussions to work through the final sticking points. At the same time, Indian officials will host trade ministers from the UK and Canada in New Delhi, alongside starting fresh trade talks with Mexico this week. However, major questions remain for Indian citizens. How will the government balance export benefits for factory workers against the demands of farmers who fear cheap imports? With Washington's temporary 10 per cent global tariff still in place, it is unclear how much relief Indian exporters will actually secure. The public will be watching closely to see what concessions India gives away.