India and the United States are in the final stages of detailing their trade agreement, which is expected to be completed soon, External Affairs Minister S Jaishankar said, signalling renewed momentum in bilateral relations following an agreement to reduce US tariffs on Indian goods.
Jaishankar made the remarks after concluding his visit to Washington, where he attended a ministerial meeting on critical minerals and held discussions with US Treasury Secretary Scott Bessent and Secretary of State Marco Rubio. He said Commerce Minister Piyush Goyal was handling the trade negotiations but did not provide a specific timeline for finalising the agreement.
In a social media post, Jaishankar described the deal as historic and said it would open a new phase in India-US relations, creating significant opportunities for cooperation. He added that collaboration on critical minerals was progressing rapidly, with further engagement expected on strategic issues, defence and energy.
Meanwhile, External Affairs Ministry spokesperson Randhir Jaiswal said the US had clarified that the final tariff rate on Indian goods would be 18%. The announcement followed a telephone conversation between Prime Minister Narendra Modi and US President Donald Trump.
Jaiswal said the reduced tariff was expected to boost Indian exports to the US, particularly benefiting labour-intensive industries and supporting employment, economic growth and prosperity.
Officials familiar with the negotiations said the revised tariff rate would take effect after both countries completed the necessary formalities and finalised the agreement. The deal is expected to constitute the first phase of a broader bilateral trade agreement.
During his meeting with Bessent, Jaishankar discussed strengthening economic ties and strategic cooperation. His discussions with Rubio covered trade, energy, nuclear cooperation, defence, critical minerals and technology. Both sides also agreed to advance discussions through existing bilateral mechanisms.
Sources familiar with the negotiations indicated that India was unlikely to eliminate tariffs on all US goods. They added that New Delhi had sought safeguards for sensitive sectors, including agriculture and dairy.
Recent diplomatic engagements, including meetings involving US Ambassador Sergio Gor in New Delhi, indicate efforts by both countries to stabilise relations and advance cooperation across multiple sectors.
