Trade negotiations between the United States and India are gaining momentum, with U.S. Commerce Secretary Howard Lutnick indicating that a final agreement could be on the horizon.
Speaking at the US-India Strategic Partnership Forum summit in Washington, Lutnick said, “You should expect a deal between United States and India (in the) not-too-distant future because I think we have found a place that really works for both countries.”
Optimism from Both Sides
Lutnick’s remarks were followed by a short video posted on X, where he reiterated his optimism.
“We have a great relationship between the countries,” he said.
“I’m optimistic for a trade deal soon that will benefit both nations.”
According to earlier Reuters reporting, the U.S. has set a July 9 deadline and requested final proposals from trade partners by the first week of June.
While India’s trade ministry declined to comment on the timeline, Rajesh Agrawal, India’s chief negotiator, recently expressed confidence that talks were progressing well and could yield “a good outcome” soon.
High-Level Engagement and Upcoming Meetings
A U.S. trade delegation is expected in New Delhi on June 5-6 for additional discussions.
An Indian team previously visited Washington in April, followed by a visit from Trade Minister Piyush Goyal to help accelerate the negotiations.
The U.S. is pressing for reduced tariffs, especially on agricultural products, and improved access to Indian markets for American companies.
Washington is also advocating for more defense equipment purchases from the U.S. to help reduce the trade deficit.
India’s Protectionist Reputation Under Review
Lutnick didn’t mince words when describing the challenges.
“India is a very protectionist country,” he stated, referencing tariffs that can reach as high as 100% on some goods.
“We would like our businesses to have reasonable market access.”
In exchange, the U.S. is prepared to offer greater entry for Indian goods into American markets.
Lutnick also credited the strong relationship between President Donald Trump and Indian Prime Minister Narendra Modi as a key driver in easing tensions and moving talks forward.
The coming weeks are seen as crucial for finalizing terms, with both nations under pressure to lock in a mutually beneficial deal before the self-imposed July deadline.