Indian minister claims 'astonishing progress' in trade talks with the U.S., forecasting trade volume to surpass U.S.-China trade within five years

U.S.-India trade negotiations have broken the deadlock over agricultural tariffs, aiming to open markets and reach an agreement modeled on the U.S.-Indonesia trade pact. India plans to accelerate its shift toward U.S. energy and defense procurement, targeting a U.S.-India trade volume exceeding that with China by 2030. Modi and Trump have set a goal of achieving $500 billion in bilateral trade within five years. Earlier, India and the U.K. signed their largest free-trade agreement post-Brexit, mutually reducing tariffs on a wide range of goods. I. India’s Commerce Minister stated that trade negotiations with the U.S. have achieved 'astonishing progress.' According to a July 25 report in *The Times of India*, Indian Commerce Minister Piyush Goyal, speaking after signing a major free-trade agreement with the U.K., declared that India has recently made substantial gains in international trade negotiations—not only concluding the landmark India-U.K. FTA but also advancing smoothly in talks with the U.S., achieving 'astonishing progress.' The report noted that Minister Goyal’s optimistic statement came amid repeated missed deadlines for finalizing the deal between Washington and New Delhi. On April 2, Trump first announced a 26% reciprocal tariff on Indian goods as part of a broader trade policy initiative. Although the initial suspension period for these tariffs was set to expire on July 9, the U.S. later extended the deadline to August 1. Trump has designated August 1 as the final date by which multiple countries—including India—must either sign trade agreements or face steep tariffs. Yet U.S.-India trade negotiations are progressing well, with Indian delegations having visited the U.S. multiple times to finalize deal details. Both sides appear optimistic about reaching a trade agreement. Last week, Trump likewise expressed optimism, stating that Washington and New Delhi are 'very close' to finalizing a bilateral interim trade agreement, with both countries aiming to conclude a comprehensive bilateral agreement by year-end. On July 24, Commerce Minister Goyal elaborated on the progress of U.S.-India trade talks during interviews with Reuters, *The Times of India*, and other media outlets, saying: 'I truly hope we can forge a very significant partnership. The broad framework is already in place; now the focus is mainly on lowering tariffs on agricultural products and dairy. Negotiations are underway in the conference room—if we can resolve these smaller, technical issues, India may still pursue a comprehensive trade agreement with the U.S.' II. Trump revealed that the U.S.-India agreement would mirror the terms reached with Indonesia. In an interview with Bloomberg on July 25, Minister Goyal echoed similar confidence, stating he believes India and the U.S. will reach an agreement before the August 1 deadline. However, it remains unclear how they will resolve lingering disputes over a handful of agricultural products—issues that have delayed negotiations for over a month. For years, Washington has sought greater access for U.S. agricultural exports to the Indian market, viewing India as a largely untapped major market. India, however, has strongly protected its domestic agricultural sector, citing food security, farmers’ livelihoods, and the interests of millions of smallholder farming families. On Tuesday, Trump hinted at a potential breakthrough in U.S.-India trade talks, indicating that certain U.S. goods would gain 'access' to the Indian market as part of the agreement. Trump said the deal with India would resemble the recent agreement with Indonesia, adding: 'India is essentially following the same path.'

Where’s the promised 'win-win partnership'? After the tariff impasse, Trump lambasts India as a 'dead economy'

After trade negotiations over tariffs reached an impasse, Trump launched a fierce social-media attack against India on Thursday, labeling it a 'moribund economy' and declaring, 'I don’t care about India’s relationship with Russia.' According to CCTV News, Trump announced that a 25% tariff would be imposed on Indian exports to the U.S. starting August 1. While European nations, Japan, and South Korea had already signed trade agreements with the Trump administration under pressure, India continued to refuse to compromise. On Thursday local time, Trump posted on Truth Social: 'We do almost no business with India—their tariffs are astronomically high, among the highest in the world.' He added: 'I don’t care what India does with Russia. They can jointly ruin their moribund economies—I couldn’t care less.' As one of the most stubborn holdouts in the U.S.’ global tariff negotiations, the Indian government issued a statement on Wednesday responding that any U.S.-India trade agreement must be 'mutually beneficial' and safeguard the interests of Indian farmers and small businesses. It remains uncertain whether U.S. and Indian trade negotiators will reach an agreement before the deadline. Analysts warn of damage to bilateral relations.

US Envoy Calls India a Top Partner, Backs Deeper Trade Ties

20 hours ago

US Ambassador Sergio Gor affirmed India as a key partner, highlighting flexibility on Russian oil sanctions and upcoming energy cooperation talks amid trade negotiations.

bloomberg

2026-10-14

US Envoy Calls India a Top Partner, Backs Deeper Trade Ties

US Envoy Calls India a Top Partner, Backs Deeper Trade Ties

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