New Delhi [India], January 28 (ANI): A day after India concluded its negotiations with the European Union on a Free Trade Agreement (FTA), dubbed the “mother of all deals”, the country is now looking towards closing a similar agreement with the United States. Sources in the Ministry of External Affairs said negotiations on the India-US trade deal have made significant progress and could be “finalised any day now”.
They said that even as talks with the European Union were underway, negotiations with the United States had continued in parallel. What remains between the two sides, sources said, is “just the dotting of the Is and the crossing of the Ts”, highlighting the robustness of recent negotiation rounds.
During the 56th Annual Summit of the World Economic Forum in Davos on January 21, US President Donald Trump expressed confidence about the India-US Bilateral Trade Agreement (BTA). Praising Prime Minister Narendra Modi as a close friend and respected leader, Trump said the two countries were “going to have a good deal”.
“I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine, and we are going to have a good deal,” Trump said when asked about the India-US trade deal by Moneycontrol, following his address at the forum.
Earlier, India’s Commerce Secretary Rajesh Agrawal said that the much-anticipated first tranche of the India-US BTA was “very near”, though he stopped short of giving a specific timeline for its conclusion.
Formally proposed in February following directives from the leadership of both nations, the BTA aims to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030. Talks were first announced during Prime Minister Narendra Modi’s visit to Washington in February 2025.
On January 9, the Ministry of External Affairs said, “India and the United States were committed to negotiating a bilateral trade agreement as far back as February 13 last year. Since then, the two sides have held multiple rounds of negotiations to arrive at a balanced and mutually beneficial trade agreement.”
Meanwhile, US Trade Representative Jamieson Greer praised the India-EU trade deal, saying India had emerged in a strong position. Speaking to Fox News, Greer said the EU’s trade-dependent economy was seeking new markets, adding that India stood to gain significantly from the agreement.
“EU is turning to India to try to find a place. The EU is so trade-dependent they need other outlets if they can’t keep sending all their stuff to the United States. I’ve looked at some of the details of the deal so far. I think India comes out on top on this, frankly,” Greer said.
According to Greer, India is expected to gain enhanced access to European markets and could also benefit from expanded mobility provisions. He highlighted India’s competitive edge, citing its low-cost labour and growing manufacturing base.
“They get more market access into Europe. It sounds like they have some additional immigration rights. I don’t know for sure, but President von der Leyen of the EU has talked about mobility for Indian workers into Europe. So, I think on net, India’s going to have a heyday with this,” he said.
When questioned about tariff structures related to India’s purchase of Russian oil, Greer said the United States expects India to gradually wind down these imports. He noted that while progress had been made, further steps were still required.
“They have made a lot of progress on this. I am in frequent contact with my counterpart in India. I have a great working relationship with him, but they still have ways to go on this point. They like the discount that you get from Russian oil, so it’s hard for them,” Greer said.
He added that recent sanctions imposed by the US Treasury Department were expected to influence India’s approach. “We expect India to continue to wind that down, but we’re watching it closely,” he said.
With India having finalised a major trade agreement with the European Union, the India-US deal now appears poised to become the next major trade announcement. (ANI)
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