India, US edge closer to interim trade agreement after four days of New Delhi talks

Trade negotiations between India and the United States moved closer to an interim agreement after both sides wrapped up four days of discussions in New Delhi, with the Commerce Ministry describing the talks as constructive and positive.

A delegation from the Office of the United States Trade Representative (USTR), led by the chief negotiator, visited India from June 1 to June 4 to advance discussions on the proposed Bilateral Trade Agreement (BTA).

In a statement, the Commerce Ministry said the talks were held in a spirit of cooperation and pragmatism, with both countries reaffirming their commitment to deepening trade and economic ties through a balanced and mutually beneficial agreement.

The discussions covered a range of issues, including trade in goods, customs and trade facilitation measures, non-tariff barriers, economic security cooperation and other areas of shared interest.

The ongoing negotiations are based on a Joint Statement issued by India and the United States on February 7, 2026, under which the two countries agreed to pursue an interim trade arrangement while continuing work on a broader Bilateral Trade Agreement.

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The latest round of talks comes amid expectations that the first tranche of the deal could be concluded in the near future. Last week, US Ambassador to India Sergio Gor said negotiations had entered the final stage, with only around 1 per cent of the agreement yet to be resolved.

The New Delhi discussions followed an earlier round of in-person negotiations held in Washington DC between April 20 and April 23.

Meanwhile, another potential point of concern has emerged as the USTR proposes fresh tariffs on imports from India and several other major economies following investigations covering 60 jurisdictions. The proposed action under Section 301 of the US Trade Act of 1974 is linked to concerns over products allegedly associated with forced labour.

Under the proposal, economies that have implemented restrictions on such imports could face tariffs of 10 per cent, while those without similar safeguards may be subject to duties of up to 12.5 per cent. India, China, Japan, South Korea, the United Kingdom, Bangladesh and Vietnam are among the economies included in the review.