India and the United States are intensifying efforts to finalize the first phase of a proposed bilateral trade agreement, with a high-level Indian delegation heading to Washington this week. After five rounds of negotiations, both nations aim to conclude the initial tranche by October –November 2025. Key discussion points include improving market access, adjusting tariffs, enhancing supply chain cooperation, and boosting India’s renewable energy imports from the U.S.
The talks coincide with the arrival of Sergio Gor, the new U.S. Ambassador to India, whose close ties to President Donald Trump signal strong political backing for deeper bilateral engagement. Gor’s recent meetings with Prime Minister Narendra Modi and other top Indian officials underscore the shared commitment to expanding trade, investment, and collaboration.
The India-U.S. trade pact aims to more than double the bilateral trade to $500 billion by 2030, from the current $191 billion.
The U.S. remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.8 billion ($86.5 billion exports).
The U.S. accounts for 18% of India’s total goods exports, 6% in imports, and 10.7% in the country’s total merchandise trade.
These negotiations unfold against a backdrop of elevated trade tensions, with the Trump administration having imposed tariffs as high as 50% on Indian exports — among the steepest globally.
Last updated: December 26th, 2025
