'India-US deal to expand trade between two largest economies': Finance Ministry's response post announcement
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'India-US deal to expand trade between two largest economies': Finance Ministry's response post announcement

India is in talks with the United States to negotiate a trade agreement. Although there are ongoing discussions, no final deal has been confirmed as of now. This article provides the latest information on the negotiations and why they matter.

February 3, 2026
9 min read
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India is currently engaged in discussions with the United States to reach a bilateral trade agreement. These talks are at an advanced stage, but officials have not yet confirmed if an official deal will be finalized soon. Key Highlights - As of February 2026, there is no official confirmation of the response from the Indian government to the United States about the trade deal. - India and the US have conducted multiple rounds of negotiations, with reports of being very close to an initial framework agreement. - Discussions involve several levels of officials, including ministers, diplomats, industry stakeholders, and negotiation teams. - India’s exports to the US saw a positive change, rebounding in November 2025 to nearly seven billion dollars, which is a significant increase from the previous month and lower levels a year earlier. - The government has expressed hope that the deal will be concluded soon, aiming for a mutually beneficial agreement. Current Status In November 2025, reports indicated that India and the US were very close to finalizing an initial framework agreement after six rounds of bilateral talks. Despite this progress, there has been no official confirmation about the completion or details of the deal by the start of 2026. Officials from India remain engaged in ongoing discussions through various channels, including formal negotiations and consultations with industry groups. The focus is on reaching a fair and balanced agreement that benefits both countries. The negotiations include talks on tariffs, trade barriers, and other trade-related issues. Meanwhile, India continues to participate in these negotiations firmly, with some officials commenting on the importance of achieving an early and favourable conclusion. It is also noted that India is working on improving the utilization of existing free trade agreements to facilitate better trade. Why It Matters The trade negotiations between India and the US are significant because any agreement could influence economic relations and trade flows between the two countries. A successful deal may help reduce trade barriers, increase exports, and strengthen economic ties. In particular, Indian exports to the US are an important part of India’s trade sector. A positive trade deal could open new markets for Indian products, boost the economy, and create more opportunities for businesses. The discussions also have geopolitical and strategic importance, as they reflect the growing economic partnership between India and the US. Additionally, some concerns, such as tariffs on certain imports, are part of the ongoing negotiations. Important Dates and Numbers - As of February 2026, no final official confirmation exists about the trade deal. - In November 2025, India’s exports to the US reached approximately 6.98 billion dollars, which was about 10.61% higher than the previous month. - The US sources nearly 80% of its basmati rice imports from India, despite a 50% tariff, highlighting the importance of trade relations. - India’s exports to the US in November 2024 were about 5.7 billion dollars. - The government aimed to conclude the trade agreement by fall or November of 2025, but it remains without final confirmation. Official Position Indian officials have emphasized the importance of reaching a fair and balanced agreement. Commerce Minister Piyush Goyal mentioned that an announcement would only be made when both sides agree on terms that are fair and equitable. He also expressed hope that the trade negotiations could be concluded by the fall or November 2025. The Ministry of Commerce & Industry stated that India and the US are committed to working towards an early conclusion of a mutually beneficial trade deal. They are focused on progressing negotiations and avoiding any unfair tariffs or trade barriers. In April 2025, India finalized the terms of reference for the trade agreement, which outline the framework for negotiations. The Ministry of External Affairs also criticized US tariffs as unjustified, especially regarding energy imports such as Russian oil, which India relies on to keep energy prices affordable. Overall, officials from India have shown a cautious and focused approach, seeking to ensure that any trade agreement will be fair, balanced, and supportive of India’s economic interests. Until an official confirmation is announced, the negotiations remain ongoing but promising.
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