India and the United States have agreed to intensify efforts towards concluding the India-US trade deal 2025, following positive discussions between senior officials in New Delhi on Tuesday, September 16, 2025. The Ministry of External Affairs (MEA) confirmed the developments during a press briefing on Friday, September 19, 2025, highlighting the commitment to a mutually beneficial agreement. This move addresses ongoing challenges, including US-imposed tariffs, and aims to bolster bilateral economic ties. Negotiations, initiated in March 2025, target completion of the first stage by October-November 2025.
MEA on India-US Trade Deal 2025
The MEA’s update underscores the constructive nature of recent engagements, with spokesperson Randhir Jaiswal emphasising the enduring importance of bilateral trade. A delegation from the United States Trade Representative’s office, led by Chief Negotiator Brendan Lynch, met with officials from India’s Department of Commerce to advance the India US trade deal 2025. According to the Ministry of Commerce and Industry, the discussions covered various aspects of the proposed agreement, described as “positive and forward-looking”.
MEA spokesperson Randhir Jaiswal stated during the weekly briefing in New Delhi: “We have a delegation from the United States led by United States Trade Representative, led by Chief Negotiator Brenden Lynch, who had meetings with senior officials of the Ministry of Commerce on September 16 to take forward the ongoing negotiations for a trade deal with the US.” He further affirmed India’s dedication to the partnership, noting: “As far as India–US relationship is concerned, let me tell you that we remain committed to take this very special partnership — the Comprehensive Global Strategic Partnership that we have with the United States forward, and to newer heights.”
These remarks from the MEA on India US trade deal come against a backdrop of heightened tensions. In early August 2025, US President Donald Trump imposed 50 per cent tariffs on Indian goods, citing India’s purchases of discounted Russian crude oil as a factor in pressuring Moscow over the Ukraine conflict. The tariffs, which remain in effect, have strained trade relations valued at over $190 billion in 2024. Despite this, both sides have expressed optimism, with the US administration recently resuming talks and Trump describing Prime Minister Narendra Modi as a “very good friend” in public statements.
Background on India-US Trade Deal 2025 Negotiations
Negotiations for the India-US trade deal 2025 trace back to a joint statement issued on Thursday, February 13, 2025, following a summit between Prime Minister Modi and President Trump in Washington, DC. The leaders outlined a roadmap to double bilateral trade to $500 billion by 2030, focusing on tariff reductions, easing non-tariff barriers, and enhancing supply chain integration. Subsequent rounds of talks have built on this foundation, with virtual sectoral engagements commencing in April 2025 and in-person meetings held in Washington, DC, from April 23 to 25, 2025.
The Ministry of Commerce and Industry reported that these discussions addressed a wide range of subjects, including opportunities for “early mutual wins” in multi-sector areas. External Affairs Minister S Jaishankar reiterated in early September 2025 that India aims to finalise the bilateral trade agreement by the fall of 2025, positioning it as a strategic response to the reciprocal tariff regime currently imposing 27 per cent duties on Indian exports to the US. Commerce Minister Piyush Goyal echoed this timeline, stating at an investor conference in Mumbai on Tuesday, September 2, 2025, that the country hopes to clinch the deal by November.
The talks also intersect with broader geopolitical issues. On September 16, 2025, the US revoked a 2018 sanctions waiver for India’s operations at Iran’s Chabahar port, prompting the MEA to examine implications under the Iran Freedom and Counter-Proliferation Act. MEA spokesperson Randhir Jaiswal responded: “We have seen the US statement regarding revocation of sanctions waiver for Chabahar port; we are presently examining its implications for India.” This development could affect India’s connectivity plans to Central Asia, adding layers to the India US trade deal 2025 discussions.
India’s energy ties with Russia, which account for a smaller share of global trade compared to Western nations, have been a point of contention. The MEA previously described the US tariff hikes as a “unilateral decision” in August 2025, noting that both sides were “very close to a solution” before the measures were enacted. Five rounds of talks occurred between March and July 2025, with the next scheduled for later that month, demonstrating sustained momentum despite setbacks.
Why it Matters for South Asia
The India US trade deal 2025 holds significant implications for South Asia’s economic landscape. As India’s primary trading partner in the region, a successful agreement could stabilise supply chains, reduce export costs for South Asian nations reliant on Indian goods, and foster regional investment flows. Enhanced US-India ties may also counterbalance China’s influence in the Indo-Pacific, promoting stability and opening avenues for technology transfers and job creation across the subcontinent. For smaller economies like Bangladesh and Sri Lanka, spillover effects could include diversified trade options amid global uncertainties.
What’s Next for the India US Trade Deal 2025
Looking ahead, both nations plan additional rounds of negotiations, with virtual and in-person sectoral meetings slated for late September and October 2025. The focus remains on achieving the first tranche of the agreement by November, potentially easing tariff burdens and unlocking sectors such as agriculture, pharmaceuticals, and information technology. Prime Minister Modi’s potential attendance at the United Nations General Assembly in New York later in September could provide an opportunity for high-level dialogue with President Trump, though the MEA has yet to confirm participation.
In conclusion, the intensified push for the India US trade deal 2025 signals a resilient commitment to economic partnership, poised to navigate current hurdles and drive long-term prosperity.
Published in SouthAsianDesk, September 20th, 2025
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