New Delhi: The India US trade deal first tranche is close to being finalised and is expected to bring partial relief from the sharp tariff hikes imposed by the United States on Indian exports, Commerce Secretary Rajesh Agrawal said on Thursday. While confirming steady progress, he cautioned that no definitive timeline could yet be committed, as negotiations are still underway between the two sides.
Agrawal said discussions have intensified following a virtual meeting held in the last week of December between India’s Commerce and Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer. Negotiating teams from both countries remain in continuous engagement to bridge differences and arrive at a mutually acceptable outcome.
India US Trade Deal First Tranche Nearing Consensus
According to the Commerce Secretary, both India and the United States are actively working to finalise the first tranche of the agreement, which is expected to focus on tariff rationalisation and market access. The talks assume significance as the US has imposed a punitive tariff of up to 50 per cent on most Indian goods, placing India among the countries facing the highest trade duties globally.
Indian officials remain hopeful that the deal will help stabilise export flows to the US, one of India’s largest trading partners. Agrawal said both sides are committed to securing an agreement that balances domestic priorities with long-term bilateral trade growth.
Tariff Pressure and Export Performance
The steep tariffs have weighed on several Indian export sectors, although electronics shipments to the US have continued to perform well. The Commerce Secretary explained that electronics exports remain tariff-free and have emerged as a key growth driver, even as higher duties continue to impact other segments such as engineering goods and textiles.
Despite the challenges, India expects its overall exports to the US to stay in positive territory. Officials believe that easing tariff barriers under the proposed deal could further strengthen trade momentum and restore competitiveness for Indian goods in the American market.
India US Trade Deal First Tranche Backed by Strong Diplomatic Engagement
Reinforcing the positive outlook, the newly appointed US Ambassador to India, Sergio Gor, said earlier this week that New Delhi and Washington remain actively engaged in trade negotiations. He also conveyed that US President Donald Trump had sent his “best wishes” to Prime Minister Narendra Modi.
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Gor highlighted the close personal rapport between the two leaders, noting that while real friends may disagree at times, they ultimately resolve differences through dialogue. He added that trade, though important, is only one pillar of the broader India-US relationship.
PaxSilica Invitation and Broader Cooperation
Beyond trade, Gor said India and the US would continue close cooperation in areas such as security, counter-terrorism, energy, technology, education, and health. He also announced that India would be invited next month to join PaxSilica as a full member.
PaxSilica is a new US-led initiative aimed at building a secure and innovation-driven silicon supply chain, spanning critical minerals, energy inputs, advanced manufacturing, semiconductors, artificial intelligence, and logistics. Current members include Japan, South Korea, the United Kingdom, and Israel, and India’s inclusion is expected to further strengthen the grouping.
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