US-India Trade Deal Shows Promising Progress with Potential Agreement by End of 2024

Trade between the United States and India reached approximately USD 190 billion in 2024, highlighting the significant economic relationship between the two nations.

Washington has signaled that the long-anticipated trade agreement between India and the United States could be finalized by the end of this year. According to a report by news agency ANI, the India-US trade negotiations have experienced "a lot of positive developments" in recent discussions after the Donald Trump administration moderated its previously confrontational position regarding India's Russian oil purchases.

A senior US official, quoted in the report, revealed that Washington is currently working on two parallel issues with New Delhi - a reciprocal trade agreement and addressing concerns related to India's purchases of Russian oil.

"I think we've had a lot of positive developments with them recently. We have two things going on with them. Of course, we have a reciprocal trade negotiation, but we also have a Russian oil issue, where we've seen market improvement on that end," the official stated on Thursday.

The official indicated that the discussions could yield results "before the end of the year," as negotiations are progressing at an "encouraging" pace.

"I'd like to say we can relax and take a break, but there's still a lot to do, but there's a lot of positive progress going on already, and we may have more to come before the end of the year," the official added.

The US official emphasized that while considerable work remains, the momentum has been positive. "I think we've had a lot of positive developments with them recently. We have two things going on with them. Of course, we have a reciprocal trade negotiation, but we also have a Russian oil issue, where we've seen market improvement on that end."

The US administration is addressing two key issues with India. The first involves reciprocal trade negotiations, which typically aim to balance tariffs and expand market access between both economies. These talks seek to resolve long-standing concerns between New Delhi and Washington, including duties on American agricultural and industrial goods, India's request for restored trade preferences, and enhanced access for Indian services professionals in the US market.

The second issue, as noted by the official, concerns Russian oil imports. India's purchases of Russian oil have been a contentious point in India-US trade discussions. India has maintained that it would determine its Russian oil purchases based on national interests and the need to protect Indian consumers.

With bilateral trade between the US and India reaching approximately USD 190 billion in 2024, both countries have expressed ambitions to substantially increase their commercial relationship in the coming years.