India is in talks with the United States on a potential trade deal structured in three phases, with an interim agreement expected before July, when President Donald Trump’s planned reciprocal tariffs are set to take effect, according to a Bloomberg report citing Indian officials familiar with the matter.
The interim agreement is likely to cover areas such as improved market access for industrial goods, select agricultural products, and the easing of non-tariff barriers like quality control standards. The report noted that the negotiations are ongoing, and it remains unclear whether the US has agreed to the proposed phased approach.
India’s Commerce Minister Piyush Goyal is currently in Washington on a four-day visit, set to conclude Tuesday. In a post on X (formerly Twitter), Goyal said he had “good discussions” with US Commerce Secretary Howard Lutnick to push forward the first phase of the deal. He is also scheduled to meet US Trade Representative Jamieson Greer during his visit.
According to the report, the second phase of the deal could be a broader agreement, potentially finalised between September and November. This phase may encompass up to 19 key sectors, based on the terms of reference agreed upon by both nations in April. Its announcement might coincide with a visit by President Trump to India for the Quad leaders’ summit.
Comprehensive Trade Agreement
The final stage is expected to be a comprehensive trade agreement, subject to approval by the US Congress, and likely won’t be concluded until next year, as per the report.
Meanwhile, India was among the first countries to initiate trade negotiations with the US after Prime Minister Narendra Modi’s visit to the White House in February, shortly after Trump took office. Both leaders agreed to work toward finalising the first tranche of a bilateral trade deal by the fall. Since then, Indian officials have signaled interest in securing “early mutual wins” ahead of the deadline, as per the report.
Despite progress, tensions have surfaced in recent days. India has reportedly taken a firmer stance, warning of retaliatory tariffs on US goods. Meanwhile, Trump has claimed that India offered to eliminate tariffs on US products entirely, while downplaying any urgency to reach an agreement.
