India and the United States are on the verge of finalizing a significant trade deal, according to a government official. The official stated that both nations are currently fine-tuning the details of the agreement, having completed five rounds of discussions so far. The ongoing negotiations aim to address the challenges posed by the 50% tariffs imposed by the Trump administration on Indian exports, particularly affecting crude oil imports from Russia.

Commerce and Industry Minister Piyush Goyal confirmed that talks are progressing positively. He noted, "We are in dialogue with the United States of America. Our teams are engaged. We hope to work towards a fair and equitable agreement in the near future." Goyal emphasized that India is not rushing into any trade agreements, highlighting the importance of long-term considerations in trade negotiations.

The proposed Bilateral Trade Agreement (BTA) aims to significantly increase bilateral trade, targeting a rise to USD 500 billion by 2030 from the current USD 191 billion. The leaders of both countries have set a deadline to conclude the first phase of the agreement by late 2025. Despite the challenges, including high tariffs that have strained relations, both sides are optimistic about reaching a mutually beneficial conclusion.

Recent discussions included a visit by an Indian official team to Washington, where they engaged with US counterparts. Goyal's remarks reflect a commitment to maintaining strong economic ties, despite the hurdles presented by tariffs. The US remains India's largest trading partner, with bilateral trade valued at USD 131.84 billion in 2024-25, accounting for a significant portion of India's total exports and imports. However, India's merchandise exports to the US saw a decline of nearly 12% in September due to these tariffs, while imports increased by about 12% during the same period.

As negotiations continue, both countries are hopeful for a resolution that will enhance their economic partnership and address existing trade barriers effectively.