India stands very close to sealing the first tranche of a major trade deal with the United States, Commerce Secretary Rajesh Agrawal announced today, January 16, 2026. Negotiations of the trade deals continue amid steep 50% tariffs imposed by President Donald Trump on most Indian goods, the highest globally. Yet, India's exports to the US hold strong at a positive trend.
Speaking to reporters, Agrawal emphasized ongoing virtual talks between negotiating teams but avoided setting a timeline. "There are engagements going on and teams are talking virtually about pending issues. But we cannot put a deadline. It is very near, that will happen as long as both sides are ready and feel it is the right time," he said. This first part of the bilateral trade agreement (BTA) aims to lower reciprocal tariffs on Indian exports worth $48.2 billion, helping sectors hit hard by duties.
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Recent Talks Push India-US BTA Forward
A US delegation led by Ambassador Sergio Gor and Deputy USTR Rick Switzer met Commerce Minister Piyush Goyal on December 10 and Agrawal the next day in New Delhi. They covered the framework for this interim deal and the broader BTA, marking the sixth round of talks since February last year. Back then, PM Narendra Modi and President Trump launched "Mission 500," targeting $500 billion in bilateral trade by 2030, more than double current levels.
Despite missing the fall 2025 target for the first tranche, India's Chief Economic Adviser recently hinted at an interim pact by March 2026. Electronics exports, which remain tariff-free, have driven growth, with total shipments to the US of $65.9 billion (9.8% more) from April to December in the financial year 2026. Monthly exports have surged to around $7 billion, focused on low-tariff areas where Indian industry shows resilience in supply chains.
Agrawal rejected concerns that talks might fall apart. He emphasized that both sides are committed to the discussions. On energy imports, a sticking point, India continues buying from traditional Middle East suppliers, importing over 80% of its needs. The Trump administration pushes for more US shipments, but no disruptions are expected yet.
India-EU FTA Also Nears Completion
In parallel, India edges closer to an FTA (Free Trade Agreement) with the European Union. At least 20 of 24 chapters are finalized, with daily virtual engagements underway. "Few issues remain under negotiation. We are trying to meet the timeline before our leaders meet", Agrawal noted ahead of the India-EU summit on January 27.
The Foreign Secretary mentioned progress in Ahmedabad two days ago, while Goyal's Brussels visit last week proved pivotal. He met EU Trade Commissioner Maros Sefcovic, guiding teams to resolve hurdles & speed up the comprehensive deal after an intensive diplomatic push.
India-US trade deal updates like these signal resilience against tariffs, with the first phase of India-US BTA poised to unlock relief for exporters.
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