U.S. Treasury Secretary Scott Bessent has expressed confidence that India will be the first country to strike a trade deal with Washington, citing relatively straightforward issues that make an agreement more attainable. Speaking at a closed-door briefing during the Spring Meetings of the International Monetary Fund and the World Bank, Bessent noted that trade talks between the two nations were “very close” to conclusion.
“India has fewer non-tariff trade barriers, no currency manipulation, and minimal government subsidies,” Bessent remarked, underscoring the favorable conditions that have accelerated negotiations. According to reports from meeting participants, the primary concerns in the India-U.S. trade dialogue revolve around tariff levels.
Adding momentum to the discussions, U.S. Vice President J.D. Vance, who met with Indian Prime Minister Narendra Modi in Jaipur earlier this week, announced that both nations had finalised the terms of reference for the trade negotiations. “This is a vital step toward realising President Trump and Prime Minister Modi’s vision,” Vance said. “It sets a roadmap toward a final deal between our nations, and we believe there is much America and India can accomplish together.”
The agreement seeks to avoid the imposition of a 26% tariff on Indian exports to the U.S., a policy set to take effect in July under President Trump’s proposed reciprocal tariff regime if no deal is reached. Vice President Vance’s office described the negotiations as “an opportunity to establish a new, modern trade agreement focused on job creation and citizen well-being in both countries.”
India has taken several proactive steps, including reducing tariffs on high-profile American goods such as Harley-Davidson motorcycles and bourbon whiskey. Additionally, New Delhi has indicated plans to increase purchases of U.S. energy and defense products.
Finance Minister Nirmala Sitharaman, speaking at Stanford University’s Hoover Institution, highlighted the strategic value of a trade deal with Washington. “India’s biggest and top-most trading partner is the United States of America, and that importance is not lost on today’s government in India,” she said. Addressing members of the Indian diaspora, Sitharaman noted that the initial phase of the agreement is expected to be completed by autumn.
Bilateral trade between India and the U.S. reached $129 billion in the previous year, with a $45.7 billion surplus in India’s favor. The expected agreement is poised to strengthen this robust economic partnership, setting the stage for deeper cooperation across multiple sectors.
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