The United States and India are “very, very close” to finalising a historic bilateral trade agreement that could open India’s 1.4 billion-strong market to American goods on reciprocal and mutually beneficial terms, a senior US official said on Tuesday.
US Deputy Assistant Secretary of State Bethany Poulos Morrison, speaking at an event organised by the Foundation for India and Indian Diaspora Studies (FIIDS) at Capitol Hill, said Prime Minister Narendra Modi and US President Donald Trump were working towards a “result-oriented” relationship.
“We're not measuring (the relationship) by meeting. We're measuring it by results,” Morrison said, referring to the trade negotiations launched after the understanding reached between Modi and Trump earlier this year.
“When we looked at trade in February 2026, we announced the intention to finally conclude the historic trade deal. We are very, very close,” she said.
Morrison said the proposed agreement would provide greater access to India’s market for American products while ensuring terms that are reciprocal and beneficial to both sides.
“The administration is driving toward the goal of Mission 500 -- the goal of achieving US 500 billion in trade by 2030 -- with a real sense of urgency,” she said.
Her remarks came as US Trade Representative (USTR) Jamieson Greer visited India for discussions with Commerce and Industry Minister Piyush Goyal on the proposed trade agreement.
Morrison also highlighted growing investment ties, saying Indian companies were expanding their presence in the US. At the recent SelectUSA Investment Summit, India announced USD 20 billion in new investment commitments, including USD 1.1 billion in immediate investments, which she described as the “largest announcement in SelectUSA's history”.
The US was India’s second-largest trading partner in 2025-26. India’s exports to the US increased marginally by 0.92 per cent to USD 87.3 billion during the last fiscal year despite high tariffs, while imports rose 15.95 per cent to USD 52.9 billion. India’s trade surplus with the US declined to USD 34.4 billion in 2025-26 from USD 40.89 billion in 2024-25.
Morrison also pointed to expanding cooperation in the energy sector.
“We are exchanging goods in American oil, gas, and coal, and both sides are exploring expanding civil nuclear cooperation under the newly enacted Shanti Act,” she said.
“The US-India hydrocarbon trade has expanded significantly since 2025, reaching USD 14.4 billion to date,” she added.
She further noted that over 330,000 Indians were enrolled in US educational institutions, contributing more than USD 14 billion to the American economy and supporting over 50,000 jobs.
Meanwhile, Goyal and USTR Greer held high-level talks in New Delhi on Tuesday to revive and recalibrate the proposed bilateral trade agreement after changes in US tariff policies disrupted the earlier framework.
The two sides are working towards concluding an interim trade pact before July 24, when Washington’s temporary 10 per cent tariff on imports from trading partners is set to expire.
Greer’s visit follows the meeting between Modi and Trump on the sidelines of the G7 summit in France on June 17, which gave fresh momentum to negotiations considered important for strengthening economic ties.
The latest talks follow discussions between chief negotiators held in New Delhi from June 2 to 4.
For India, securing preferential tariff treatment has become a key priority after changes in US tariff policy reduced the advantage New Delhi had expected over competitors such as Vietnam and other ASEAN economies.
Under the February framework, the US had agreed to reduce tariffs on Indian goods to 18 per cent, lower than duties applicable to several competing exporters.
However, subsequent developments, including a court ruling and Washington’s decision to impose a temporary 10 per cent tariff on imports from all countries, forced both sides to revisit parts of the agreement.
Earlier on June 5, Goyal had said India and the US were moving towards resolving outstanding issues and were likely to conclude the “very, very vibrant” first phase of the Bilateral Trade Agreement (BTA) by the middle of next month.
India and the US formally began BTA negotiations on February 13, 2025.
In February this year, both countries announced the framework for the first phase, following the 50 per cent tariffs imposed by the US on Indian goods. However, on February 20, the US Supreme Court struck down the sweeping tariffs.
Following that, the Trump administration imposed 10 per cent tariffs under Section 122 of the Trade Act on all countries for 150 days from February 24. The measure is scheduled to expire on July 24.
Under the earlier framework, India proposed eliminating or reducing tariffs on US industrial goods and several food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.
New Delhi has also indicated plans to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
With the tariff environment changing, both countries are reassessing elements of the agreement.
The February joint statement included a provision that if either country changes agreed tariff commitments, the other side may modify its obligations.
Separately, the USTR launched two Section 301 investigations on March 11 and 12 covering about 60 economies. One examined alleged excess industrial capacity, while the other looked into forced-labour concerns in global supply chains. India was included in both investigations.
When the first phase framework was prepared, India had been expected to gain a comparative advantage over competitors including ASEAN countries such as Indonesia, Malaysia, Singapore, Thailand, the Philippines, Brunei, Vietnam, Laos, Myanmar and Cambodia, along with Sri Lanka, Pakistan and Bangladesh.
(With PTI inputs)