US President Donald Trump has expressed optimism about reaching a trade agreement with India soon, stating that talks are “coming along great.” This comes as the Trump administration seeks to sign deals with India and other key trading partners before a 90-day pause on proposed reciprocal tariffs expires in July.
Trump, speaking to reporters outside the White House on Tuesday, said, “I think we’ll have a deal with India.” He added, “The Prime Minister (Modi), as you know, was here three weeks ago, and they want to make a deal.”
Prime Minister Narendra Modi had visited the United States in late February, marking an important step in strengthening bilateral ties between the two nations.
Trump’s positive remarks followed comments from US Commerce Secretary Howard Lutnick, who indicated that the US and India had already reached a trade deal. According to Lutnick, the only remaining step was awaiting final approval from the Indian government.
In an interview with the media, he stated, “I have a deal done… but I need to wait for their Prime Minister and their Parliament to give its approval.”
US Treasury Secretary Scott Bessent also suggested that America was “very close” to signing a deal with India. He hinted that India could be among the first countries to finalise a trade deal with the US, potentially within the week or the following week, although he refrained from providing further details.
According to reports, the two sides have already agreed on a roadmap for trade discussions, with a focus on key sectors such as agriculture, industry, and services.
India may offer a “forward most-favoured-nation” (MFN) clause to the US, ensuring that any future tariff concessions made with other countries would automatically apply to the US.
This clause is rare in India’s trade negotiations but is seen as a way to “future-proof” the deal, ensuring no other trade partners receive better terms than the US.
India’s willingness to make significant concessions also marks a shift in its approach to trade talks, making it one of the more eager nations compared to other large trading partners of the US, including China, Canada, and the European Union.
The negotiations have reportedly already fast-tracked discussions on 19 out of the 24 categories of goods traded between the two nations, with contentious sectors such as agriculture, including soybeans and corn, and military equipment set to be discussed later.
India is said to have proposed reducing tariffs to between 0 and 5 percent on US frozen meat and agricultural products, such as fish, poultry, and various fruits and juices. Currently, these products face duties ranging from 30 to 100 percent.
Reports suggest that India could offer tariff concessions on nearly 90 percent of tariff lines immediately, with the remaining items to be dealt with in a phased manner.
In return, India has sought preferential tariff treatment for labour-intensive sectors, such as textiles, toys, leather goods, furniture, gems and jewellery, and automotive components.
New Delhi is also seeking long-term assurances from Washington regarding favourable treatment for pharmaceuticals and engineering goods, aiming to secure its position as a key partner in US supply chains.
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