India and the US have resolved most outstanding issues surrounding the proposed trade agreement, including tariff-related matters, and the deal could be finalised “soon”, External Affairs Minister S Jaishankar said on Saturday.
He said negotiations were continuing to address remaining concerns, with both sides working towards concluding the agreement.
Jaishankar’s remarks come ahead of Prime Minister Narendra Modi’s likely visit to the US next month for the G20 Summit.
PM Modi is expected to meet US President Donald Trump on the sidelines of the summit to discuss the broader trajectory of bilateral relations and review progress on the proposed trade pact.
Washington conveyed to New Delhi that India would receive a relative edge on tariffs compared with other competing economies under the bilateral trade agreement currently under negotiation, a senior Indian Government official said.
The assurance comes as both sides continue parallel talks on an initial package and the wider pact.
According to the official, the United States has indicated that India would hold a comparative tariff advantage over rival markets once the deal takes effect.
The precise scale of that benefit, however, will hinge on the final design of the tariff schedule. Officials are also awaiting the outcome of a second investigation launched by the Office of the United States Trade Representative concerning India.
India is targeting completion of the first tranche of the agreement before the close of the present financial year. Discussions on this early package and the broader Bilateral Trade Agreement are proceeding simultaneously.
Services-sector matters have been deliberately excluded from the opening tranche and are slated for the second phase, which will be part of the larger agreement.
The completed deal is expected to consist of a formal legal text plus annexes, including a specific chapter on customs procedures and trade facilitation. In a related development, another senior official from the commerce ministry noted that India and the United States had already held technical talks on customs and trade facilitation the previous week.
A two-person American team travelled to India on 2-3 November for those discussions. The two Governments have structured the negotiations in stages so that quicker, mutually beneficial elements can be locked in through the first tranche.
At the same time, more complex subjects continue to be addressed under the comprehensive agreement.