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The India-US trade deal is in its final stage, but its signing is not imminent, according to US Trade Representative Jamieson Greer. His October 1 comments came after meeting Commerce and Industry Minister Piyush Goyal on the sidelines of the G20 Trade Ministers’ meeting, emphasising unresolved issues that continue to delay the agreement.
Why is the India-US Trade Deal taking time?
India and the US agreed on a framework in February, but negotiations have persisted over tariffs, market access and non-tariff barriers. Also, agriculture, digital trade, manufacturing capacity and India’s commercial ties with Russia remain sensitive areas.
Greer said both sides had identified a “universe of items” that remain sticking points and are working to resolve them. He also indicated that Prime Minister Narendra Modi and US President Donald Trump could speak again to assess progress.
How does the US have leverage in trade negotiations?
The US has several instruments that can increase pressure on Indian exporters. One significant measure is the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The law provides for tariffs of up to 100% on countries buying Russian energy, potentially affecting India because of its Russian oil purchases.
The US is also pursuing a separate Section 301 investigation involving India. The probe covers issues including industrial capacity and trade practices and could lead to additional tariff measures.
Indian exporters are therefore facing uncertainty. The Indian Express reported that some US buyers have reduced bulk orders and are diversifying sourcing while the tariff picture remains unclear.
What is India offering to the trade aggrement?
Under the February framework, India indicated that it aims to purchase US products worth $500 billion over five years, covering energy, aircraft and aircraft parts, technology, precious metals and coking coal.
India has also made strides in areas important to US businesses, including digital trade and data-centre investment. However, India continues to seek tariff terms that keep its exporters competitive with rival suppliers, including Southeast Asian countries.
The Commerce Ministry has reiterated that India wants a balanced and commercially meaningful agreement.
What happens next for India-US?
The immediate focus will be resolving current negotiating issues and determining tariff treatment for Indian goods. India is seeking improved market access and competitive tariff terms, while the US urges for greater access and changes in areas where it sees trade barriers.
The latest US statement confirms that negotiations are continuing, but the signing timeline remains uncertain.