India-US trade deal pretty close and will be a different kind of pact, Donald Trump says
Donald Trump and Marco Rubio say negotiations are down to technical drafting, with bilateral trade targeted to cross $500 billion within three years.
India and the United States are nearing the completion of a major bilateral trade agreement that will depart significantly from traditional trade pacts, US President Donald Trump told reporters at the White House on Tuesday.
"They want to make a deal. We’re going to make a deal. Pretty close, yeah," Trump said, adding that the accord "could be a much different kind of deal," though he did not give technical details on its structure.
His remarks came as US Secretary of State Marco Rubio concluded high-level talks with External Affairs Minister S Jaishankar in Mumbai. Speaking at the US Freedom 250 reception in the city, Rubio described the strategic alignment between New Delhi and Washington as extraordinary and said the trade agreement is now "incredibly close" and could be sealed in weeks rather than months.
Where the negotiations stand
The two governments agreed on the broader framework for the first phase of the Bilateral Trade Agreement earlier this year. Negotiations have focused on securing tariff advantages for Indian manufacturing and exporters over regional peers, alongside broader cooperation in energy security, critical technologies and defence production.
According to Commerce Minister Piyush Goyal, the initial tranche of the agreement has moved past core policy negotiations into legal drafting. Goyal met US Trade Representative Jamieson Greer in the US earlier this month to work through the specifics.
| Stage of agreement | Primary focus | Current status |
|---|---|---|
| Framework agreement | Bilateral trade principles and scope | Finalised in February |
| First tranche | Tariff terms, legal contours and language | Final drafting stage |
| Long-term bilateral target | Energy, tech and goods trade volume | Aiming for $500 billion |
Rubio noted that while the US State Department does not formally draft trade texts, negotiators are down to resolving linguistic and technical details to ensure both governments share identical interpretations before any public signing ceremony.
Expanding trade targets
The momentum follows Washington's decision late last week to waive secondary tariffs of up to 100% on purchasers of Russian crude oil and gas under national security provisions. That waiver removed a significant potential friction point for Indian imports and paved the way for smoother trade talks.
US Ambassador to India Sergio Gor said in New Delhi and Mumbai that the administration has set a clear mandate to accelerate economic partnership. Two-way trade between India and the US has already reached a record $240 billion, with both nations now aiming to push bilateral exchanges past $500 billion within the next three years.
Rubio is travelling onward to Jamnagar in Gujarat to focus on energy links and strategic industrial supply chains. The Ministry of External Affairs said both governments remain committed to an early conclusion, advancing the broader India-US COMPACT partnership for economic and strategic security.
Key numbers
| What | Figure | Source |
|---|---|---|
| Current bilateral trade | Over $240 billion | US Ambassador to India Sergio Gor |
| Three-year bilateral trade target | Over $500 billion | US Ambassador to India Sergio Gor |
| Waived secondary energy import tariff | Up to 100% | US White House waiver under Lindsey O. Graham Act |
In this story
| Name | Role in the story |
|---|---|
| Donald Trump | US President who announced that trade talks with India are pretty close to resolution. |
| S Jaishankar | External Affairs Minister of India who hosted Rubio in Mumbai. |
| Marco Rubio | US Secretary of State visiting India for bilateral strategic and trade talks. |
