(Image source from: x.com/ODNIgov)

Signs of a possible trade agreement with the US were mentioned from the White House on Monday as President Donald Trump stated that Washington and New Delhi are getting closer to completing a new trade deal. He also mentioned that the US would eventually lower tariffs on Indian goods. Trump made these comments during the inauguration ceremony of Sergio Gor, the new US Ambassador to India, in the Oval Office. The US President indicated that talks with India have progressed significantly and both parties are nearing a fair agreement. “We are making a deal with India. It’s very different from what we had before. They may not like me right now, but they will come to appreciate us again. We are aiming for a fair deal. They negotiate very well, so Sergio, you need to be aware of that. I think we are close to finalizing a good deal for everyone,” he said during the ceremony.

Later speaking to the press, Trump addressed questions about whether the US would think about reducing tariffs on imports from India. “Currently, tariffs on India are very high due to the Russian oil situation, and they have stopped dealing with Russian oil. This has been cut back quite a lot. Yes, we will be lowering the tariffs. At some time, we will lower them,” he stated. “India has one of the oldest civilisations, it is the largest country in the world, and it has more than 1.5 billion people. We have a great relationship with Prime Minister Modi, and Sergio has already improved that since he has become friendly with the Prime Minister,” Trump continued. His statements come during ongoing trade discussions between the two countries. On November 5, India’s Minister of Commerce and Industry, Piyush Goyal, mentioned that talks about the India-US Bilateral Trade Agreement were progressing well, but there are still some sensitive and important issues being discussed.

“Negotiations are going very well. There are quite a few sensitive and serious matters, so naturally, it takes time,” Goyal said when asked about the status of the talks. The agreement, initially suggested in February 2025 under guidance from both governments, intends to increase trade from the current USD 191 billion to USD 500 billion by 2030. So far, five rounds of discussions have taken place since March, including an online round on October 23, as negotiators from both sides continue to work towards signing a first-phase deal expected by the end of 2025. In September, Goyal led a group of senior officials to Washington to further these discussions. This Indian delegation included Special Secretary and Chief Negotiator Rajesh Agrawal, who took part in high-level meetings with US trade representatives.

Around the same time, a US team led by Brendan Lynch, Assistant Trade Representative for South and Central Asia, had what officials described as “positive and forward-looking” conversations with India’s Department of Commerce in New Delhi. Both sides agreed to boost efforts to achieve a detailed and mutually beneficial trade agreement.