'India-US 'historic' trade deal nears completion', says EAM Jaishankar

India and the US are on the verge of signing a landmark trade agreement described as ‘historic’ by India's External Affairs Minister S Jaishankar, who said on Thursday (February 5) that final details are being worked out, and completion is expected very soon. The announcement came at the end of a productive visit to Washington by Jaishankar, during which he held talks with US Secretary of State Marco Rubio and attended the inaugural Critical Minerals Ministerial.

In a social media post reflecting on the trip, Mr Jaishankar said: “The historic India-US trade deal is in the final stages of detailing that will be completed very soon. It opens up a new phase in our bilateral ties, with vast possibilities for the relationship.” He added that cooperation on critical minerals, essential materials like lithium, cobalt and rare earths used in electric vehicles, semiconductors and clean energy technologies, was ‘advancing rapidly’. Further engagements on strategic issues, defence and energy were anticipated in the coming days, with "strong momentum" evident overall.

The comments follow high-level discussions amid efforts by the US to build alternative global supply chains for critical minerals, reducing reliance on dominant suppliers such as China. The ministerial, hosted by Mr Rubio, brought together representatives from dozens of countries to promote secure and diversified sourcing. India, with its significant geological potential and expanding industrial needs, has emerged as a key partner in these initiatives.

Jaishankar expressed support for the US-launched Forum on Resource Geostrategic Engagement (FORGE), part of the evolving critical minerals partnership framework. The prospective trade deal is seen as a major step in strengthening economic links between the world's two largest democracies. Under the deal, US reduces tariffs on certain Indian to 18%, from previous 50%. While specifics of the trade pact remain under wraps pending finalisation, Jaishankar's remarks signal optimism that the deal could be announced soon, possibly by March, accompanied by a joint statement.