India and the United States may finalise an interim trade agreement within the 90-day tariff pause announced by the Trump administration, provided it results in a mutually beneficial outcome, a senior Indian official said on Friday. “Everything is possible in 90 days if it is a ‘win-win’ for both sides,” the official stated, highlighting optimism around concluding key elements of the proposed deal.
Talks are progressing rapidly as both countries have already agreed on the terms of reference (ToR) to begin negotiations. The first phase of the agreement is being targeted for completion by fall (September–October) this year, with an aim to boost bilateral trade from the current USD 191 billion to USD 500 billion by 2030.
“The work has started. India is far ahead of other countries in negotiating a trade deal,” the official added. While a large portion of the dialogue is set to happen through video conferencing, a few in-person meetings are expected, and US Vice President J D Vance is also likely to visit India.
The trade talks gained urgency after the US announced a 26% tariff on Indian goods on April 2. However, this decision was rolled back on April 9 for a 90-day period until July 9. A 10% baseline tariff, however, remains in effect.
Commerce and Industry Minister Piyush Goyal on Friday assured that India remains in “continuous dialogue” with the US and will not make any rushed decisions. He reiterated that protecting national and public interests is the government’s priority.
“Humne pahle bhi kai baar kaha hai ki hum banduk rakhke kabhi negotiate nai karte hain. Sammay ki pabandiyaan acchhi rahti hain ki wo protsaahit karti hain ki baat teji se ho, lekin jab tak desh hit aur jan hit ko hum surakshit na rakh saken, tab tak kabhi bhi jaldbazzi karna accha nai hai,” Goyal told reporters.
He further added, “In the case of free trade agreements, these are indicative timelines. We aspire for those timelines. But at the end of the day, it has to be a win-win for both sides. It has to be a fair, equitable and balanced solution. Just to meet a deadline, you cannot compromise national interest.”
The US remains India’s largest trading partner, accounting for 18% of India’s total goods exports. In 2023–24, India recorded a trade surplus of USD 35.32 billion with the US, up from USD 27.7 billion in the previous year. Key Indian exports to the US include drug formulations, telecom instruments, precious stones, petroleum products, and ready-made garments. Meanwhile, major imports from the US comprise crude oil, petroleum products, coal, aircraft parts, and electronic machinery.
As both sides look to capitalise on this window of opportunity, a balanced and strategic approach is expected to shape the final contours of the long-anticipated pact.
