- India and U.S. set terms for first stage of bilateral trade deal negotiations
- Talks aim for a “win-win” outcome within a 90-day window
- Two-way trade between the nations exceeded $118 billion in FY 2023-24
- India prioritizes U.S. deal amid shifting global tariff dynamics under Trump
NEW DELHI, April 11 (Reuters) — India and the United States have finalized the terms of reference for the initial phase of a long-awaited bilateral trade deal, with negotiations now officially underway. A senior Indian trade official said on Friday that both sides are optimistic about reaching a “win-win” agreement within 90 days, marking a critical moment in U.S.-India trade relations.
The announcement comes in the wake of President Donald Trump’s decision to suspend reciprocal tariffs for several nations — a move that has injected urgency into India’s trade diplomacy efforts. The U.S. remains India’s largest trading partner, and total bilateral trade surpassed $118 billion in the fiscal year 2023-24.
Momentum Builds Despite Tariff Tensions
The renewed push for a trade pact follows the Trump administration’s recent imposition of a 26% tariff on Indian goods. While New Delhi refrained from retaliatory action, it has since accelerated trade discussions with Washington, viewing the U.S. deal as a strategic priority amid rising global economic volatility.
“We are far ahead in trade talks with the U.S compared to other countries… there are lots of possibilities in 90 days,” said the official, who spoke on condition of anonymity due to the sensitivity of the matter.
According to sources, India sees the current 90-day window as an opportunity to lock in favorable terms before global trade dynamics shift further under the evolving U.S. trade policy agenda.
Virtual and Regular Engagements Planned
The official confirmed that regular virtual meetings between trade teams from both countries will continue over the coming weeks. While the scope of the first segment of the deal remains under discussion, both sides are believed to be focusing on lowering tariffs, improving market access, and addressing regulatory bottlenecks across key sectors such as pharmaceuticals, digital trade, and agricultural products.
In a signal of cooperation, U.S. officials have reportedly welcomed India’s restraint in the face of heightened tariffs, which many analysts view as a gesture aimed at ensuring smoother negotiations.
Geopolitics Driving Trade Diplomacy
With President Trump’s trade policies shaking global markets and drawing nations into recalibrated tariff regimes, India is leveraging this period of uncertainty to fast-track bilateral economic engagements. Trade officials also indicated that a limited trade deal could be a stepping stone toward a more comprehensive free trade agreement in the future.
Observers note that the India-U.S. relationship has strategic importance beyond economics, as both countries seek to strengthen supply chains, enhance tech collaboration, and counterbalance geopolitical risks in the Indo-Pacific region.
The coming months will be crucial as both countries attempt to navigate political sensitivities and economic priorities to arrive at a mutually beneficial deal that could boost investor confidence and redefine trade architecture in the region.
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