India and US 'Actively Engaged' in Trade Negotiations
India and the United States are continuing discussions to finalize a trade deal, with the next call scheduled for January 13. Sergio Gor, the new US Ambassador to India, affirmed that both countries are actively engaged in the negotiations.
The negotiations aim to strengthen economic ties between the two nations. Despite challenges, both sides have expressed their commitment to advancing the talks and are determined to keep the momentum alive.
Background and Challenges
Trade talks between India and the US have faced hurdles, with negotiations stalling around July of last year. In August 2025, the US imposed a 50% tariff on several Indian goods, including a 25% duty on India’s purchases of Russian oil, adding complexity to the discussions.
Disagreements over tariffs and market access have been central issues. The US has pressed India to lower import duties on American agricultural products. India has sought reciprocal tariff reductions on goods where its exporters have competitive strengths, such as textiles, leather goods, and engineering products.
US Perspective and Goals
The U.S. views India as a critical economic partner, underscoring the strategic importance of the relationship. Ambassador Gor emphasized the strong relationship between Presidents Trump and Modi, highlighting the partnership’s significance beyond trade, encompassing security, technology, and energy cooperation.
India's Position
India has made it clear that it is ready to pursue a balanced agreement that protects its core economic interests. India rejected claims that it was delaying the trade deal. Randhir Jaiswal, a spokesperson for the Ministry of External Affairs (MEA), stated that the two countries had been close to a deal on several occasions.
Strategic Cooperation
India will be invited next month to join Pax Silica as a full member, placing it alongside Japan, South Korea, the UK, and Israel. This is a US-led strategic initiative to build a secure, prosperous, and innovation-driven silicon supply chain.
Looking Ahead
Both nations have been working towards a comprehensive bilateral trade agreement and a limited framework deal to mitigate the impact of tariffs on Indian exporters. The proposed pact with the US aims to more than double bilateral trade to $500 billion by 2030, from the current $191 billion.
Conclusion
India and the US are actively engaged in trade negotiations with the next discussions scheduled for January 13. Despite existing tariff disagreements and challenges, both countries are committed to strengthening their economic and strategic partnership.
