India could sign the first tranche of its long-awaited trade agreement with the United States as early as July, Commerce and Industry Minister Piyush Goyal said on Monday, signalling that negotiations between the two countries are entering the final stretch despite recent tariff tensions.
The minister’s remarks come at a time when India and the US are working to resolve outstanding issues in a proposed bilateral trade pact that is expected to improve market access and give Indian exporters an advantage over competitors in certain sectors.
Goyal’s comments also suggest that talks have gathered momentum in recent weeks, raising expectations that the two sides may be able to announce a breakthrough sooner than previously anticipated.
The minister’s latest comments build on statements he made on June 5, when he indicated that India and the United States were moving quickly towards finalising the first tranche of the agreement.
At the time, Goyal said officials from both countries had held extensive discussions in New Delhi.
“We had a full team of officials from different divisions of trade from the U.S. in Delhi,” Goyal had said.
According to him, both sides were “fast moving towards closing all the open ends” of the proposed agreement.
He had also expressed confidence that the first phase of the deal could be ready by the middle of July.
“By sometime in the middle of next month or so, we should be in a position to execute a very vibrant first tranche,” Goyal said.
The proposed agreement is expected to be the first step towards a broader India-US trade partnership.
Officials believe the initial tranche could provide India with preferential trade access in some sectors, helping domestic exporters compete more effectively in the American market.
The United States remains one of India’s largest trading partners, and a successful agreement could strengthen trade ties at a time when countries around the world are increasingly looking to secure supply chains and diversify trading relationships.
India and the US reached an initial understanding on a trade deal in February.
However, negotiations slowed after uncertainty emerged following legal challenges to US President Donald Trump’s tariff measures.
The pace of discussions picked up again after recent meetings between trade officials from both countries in New Delhi.
Despite progress, some challenges remain.
Last week, the United States proposed an additional 12.5% tariff on imports from India, arguing that India was among several economies that had not done enough to curb imports linked to forced labour.
Even so, both sides have continued discussions, suggesting there is a strong desire to reach an agreement.
The coming weeks are likely to be crucial as negotiators attempt to resolve the remaining issues.
If the timeline outlined by Goyal holds, India and the United States could announce the first tranche of the agreement by mid-July.
Such a deal would mark one of the most significant trade developments between the two countries in recent years and could lay the foundation for a broader economic partnership in the future.