India, US Accelerate Trade Talks To Finalise First-Phase Pact Before July Deadline

New Delhi: Amid the buzz of finalising the first phase of the trade pact between India and the US, talks gathered pace in New Delhi as both countries on Tuesday held high-level meetings here. The ongoing trade talks are aimed at salvaging and recalibrating a proposed bilateral trade agreement after changes in US tariff policy upended a framework negotiated earlier this year.

Entering at the final lap of the India-US trade deal, Commerce and Industry Minister Piyush Goyal met the US Trade Representative Jamieson Greer here as both sides sought to conclude an interim trade pact before July 24, when Washington's temporary 10 per cent tariff on imports from trading partners is due to expire. “First day of the meeting concluded with both sides seeking to bridge key differences and move towards a deal,” a source said.

Greer’s two-day visit comes days after Prime Minister Narendra Modi and US President Donald Trump held their first meeting in more than a year on the sidelines of the G7 summit in France on June 17, injecting fresh momentum into trade negotiations that both sides see as critical to strengthening economic ties.

The source also said that the high-stakes meeting at Vanijya Bhawan in the capital was also attended by the US delegation led by Greer and Indian key officials, including Commerce Secretary Rajesh Agrawal and India's chief negotiator Darpan Jain. The meeting, however, follows chief negotiator-level discussions held in New Delhi earlier this month (June 2-4).

“Warm welcome to @USTradeRep Amb Jamieson Greer, @USAmbIndia Amb Sergio Gor and their delegation to @DoCGoI. Looking forward to productive discussions on the bilateral trade agreement between India & US,” Goyal said in a post on X.

Earlier, Union Finance Minister Nirmala Sitharaman also held discussions with a delegation led by Greer in New Delhi. “Both sides exchanged views on strengthening bilateral trade and economic cooperation, with a focus on new opportunities for growth and deeper commercial engagement,” the finance ministry said.

As per the source, the talks between the ministers were focused on reworking a framework agreement announced in February that was built around tariff commitments later rendered uncertain by a US Supreme Court ruling, striking down sweeping tariffs announced by Trump. “Securing preferential tariff treatment in the pact has become a central objective for New Delhi after changes in US tariff policy eroded an advantage India had expected to enjoy over regional competitors such as Vietnam and other Asean economies,” it said.

Meanwhile, the US embassy in India said in a post on X that the US-India trade partnership is a win-win for both! “Stronger ties create American manufacturing jobs while supporting India’s growth as the world’s largest democracy. From energy security to tech talent exchanges, we’re building the future together,” the embassy said, adding that the US remains focused on securing a fair, reciprocal trade deal that opens markets for American exporters and delivers benefits to both nations.

Under the February framework, the US had agreed to reduce tariffs on Indian goods to 18 per cent, lower than duties facing several competing exporters. However, the subsequent court ruling and Washington's decision to impose a temporary 10 per cent tariff on imports from all countries forced both sides to revisit key elements of the framework.

Agrawal, on June 15, stated that the discussions between the two sides are expected to be centred around giving final touches to the framework deal. On June 17, US President Donald Trump said the two countries are "very close" to finalising the trade agreement.

Earlier on June 5, Goyal said India and the US are moving towards closing all open ends of the interim trade agreement, and both sides are likely to execute the ‘very, very vibrant’ first phase of the bilateral trade agreement by the middle of next month.