India and the United States are close to finalising the first phase of a bilateral trade agreement, with officials from both countries holding intensive negotiations in New Delhi aimed at concluding the deal.

The latest round of discussions began with a visiting United States delegation led by Assistant US Trade Representative for South and Central Asia Brendan Lynch. The talks are expected to continue for several days as negotiators work through the remaining details of the proposed agreement.

Indian Commerce Minister Piyush Goyal expressed confidence that both countries are on the verge of reaching a final agreement, stating that nearly all major issues have already been resolved.

According to Indian officials, negotiators have reached consensus on most aspects of the trade framework and are currently reviewing the final language of the document. Discussions are focused on technical and legal details required before the agreement can be formally signed.

The proposed deal represents the first stage of a broader effort to strengthen economic ties between the two countries. Both governments have indicated that once the initial agreement is completed, discussions will continue on a more comprehensive trade partnership covering additional sectors and areas of cooperation.

Trade negotiations between India and the United States gained momentum earlier after both sides reached a preliminary understanding on key issues. However, progress slowed following legal developments in the United States related to tariff measures introduced by President Donald Trump.

The US administration subsequently initiated investigations into trade practices involving several countries, including India, while maintaining a general tariff policy affecting a wide range of imports.

Indian officials said negotiators are assessing how recent changes in the US legal and regulatory environment may affect provisions within the final agreement. The review is intended to ensure that the trade framework remains aligned with current policies and legal requirements.

Goyal said India remains committed to concluding the agreement and believes the remaining issues are relatively minor compared with the broader consensus already achieved. He noted that discussions are now largely focused on final wording and technical details.

The discussions form part of a wider effort by both governments to expand economic cooperation and increase bilateral trade. Washington and New Delhi have set an ambitious target of raising annual trade between the two countries to $500 billion by the end of the decade.

Since March, officials have conducted multiple rounds of negotiations aimed at resolving differences on tariffs, market access, and regulatory requirements affecting businesses in both countries.

Indian authorities have maintained that the agreement protects sensitive domestic sectors, particularly agriculture and dairy production, while creating new opportunities for exporters seeking access to the American market.

Officials said the proposed arrangement would provide Indian businesses with improved access to one of the world’s largest consumer markets while preserving safeguards for key industries at home.

The trade relationship between the United States and India has expanded significantly in recent years, driven by growing investment flows, technology partnerships, and increasing commercial exchanges across multiple sectors.

Both governments view the agreement as an important step toward strengthening economic ties and supporting long-term growth. Policymakers have repeatedly emphasised the strategic importance of closer trade cooperation amid evolving global economic conditions.

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US Ambassador Sergio Gor recently expressed optimism about the negotiations, indicating that an interim agreement could be completed within weeks if discussions continue to progress as expected.

The current talks are focused on securing an initial framework that can serve as the foundation for future negotiations. Officials on both sides believe that a successful first phase will pave the way for a more comprehensive economic partnership covering investment, technology, manufacturing, services, and digital trade.

As discussions continue in New Delhi, negotiators remain focused on completing the remaining technical work needed to finalise the agreement. Both countries have reiterated their commitment to achieving a mutually beneficial outcome that supports trade growth, economic development, and stronger bilateral relations.

The outcome of the negotiations is expected to play a significant role in shaping future commercial ties between the two nations and advancing their broader economic objectives.