After India-EU FTA, Trade Deal with US Could be Announced Soon

After wrapping up a Free Trade Agreement (FTA) that experts are widely terming as the ‘mother of all deals’ with the European Union, India is now looking to conclude negotiations on a landmark bilateral trade agreement with the United States.

Talks between both sides on the India-US trade deal, in on-and-off negotiations for a long time, have significantly advanced, even during negotiations with the EU, which were underway, ANI reported, quoting sources in the Ministry of External Affairs (MEA).  According to officials, the agreement could be sealed “any day now,” with only minor procedural formalities remaining. Recent negotiation rounds, they added, have been marked by strong momentum and constructive engagement.

During the World Economic Forum in Davos on January 21, US President Donald Trump expressed confidence in the India–US Bilateral Trade Agreement (BTA), describing it as a forthcoming “good deal.” Praising Prime Minister Narendra Modi as a close friend and respected leader, Trump said the two countries were on track for a successful agreement following his address at the 56th WEF Annual Summit.

Earlier, Commerce Secretary Rajesh Agrawal had indicated that the first tranche of the BTA was nearing completion, though he refrained from specifying a timeline. The agreement, formally proposed in February following directives from the leadership of both countries, aims to expand bilateral trade from the current USD 191 billion to USD 500 billion by 2030. Talks were initially announced during Prime Minister Modi’s visit to Washington in February 2025.

On January 9, the MEA reiterated that India and the US had committed to negotiating a balanced and mutually beneficial trade agreement since February 13 last year, with multiple rounds of talks held since then.

Meanwhile, US Trade Representative Jamieson Greer praised the newly concluded India-EU trade deal, stating that India had emerged as a clear beneficiary. Speaking to Fox News, Greer said India was likely to gain greater access to European markets and possibly expanded mobility provisions, citing the country’s competitive labour costs and growing manufacturing base.

Greer also addressed concerns over India’s purchase of discounted Russian oil, noting that while India has made progress in reducing such imports, Washington expects further steps in light of recent US sanctions. He said the issue remains under close observation.

With the EU agreement now in place, the India-US trade deal appears poised to become the next major milestone in India’s global trade strategy.