September 12, 2025
NEW DELHI – The first tranche of the India–US trade agreement is expected to be finalised by November 2025, marking a significant step in easing tensions between the two countries over tariffs and trade barriers, Union Commerce and Industry Minister Piyush Goyal said on Thursday.
“In February 2025, Prime Minister Narendra Modi and President Donald Trump instructed that ministers of both sides should make a good agreement by November 2025. The first part of that agreement, the first tranche, should be finalised by November 2025. Since March, discussions have been going on in a very good environment, and both sides are satisfied with the progress,” the minister said.
The remarks come amid renewed optimism following US President Donald Trump’s recent statement on Truth Social, where he said negotiations to address trade barriers were moving forward. “I am pleased to announce that India and the United States of America are continuing negotiations to address the trade barriers between our two nations… I feel certain there will be no difficulty in coming to a successful conclusion for both of our Great Countries ! ” Trump posted.
Days earlier, Trump had described India–US ties as a “very special relationship” and reassured that he and Prime Minister Modi “would always be friends,” saying there was “nothing to worry about.”
Prime Minister Modi endorsed Trump’s comments on X, expressing confidence that the ongoing talks would “unlock the limitless potential” of the partnership. “Our teams are working to conclude these discussions at the earliest,” Modi said, adding that he looks forward to speaking with Trump to secure a “brighter, more prosperous future” for both nations.
The trade negotiations are unfolding against a backdrop of heightened global economic tensions, following the US decision to impose a 50 per cent tariff on Indian imports, including an additional 25 per cent penalty over India’s purchase of Russian crude oil—a move Washington argues supports Moscow’s conflict in Ukraine.
Analysts believe a breakthrough in the first tranche could pave the way for a broader deal, potentially reshaping bilateral trade relations between the world’s largest and fifth-largest economies.