India and the United States are close to finalizing a much-anticipated bilateral trade pact structured in two phases, a senior Indian trade official said on Monday. The initial phase will focus on eliminating reciprocal tariffs, with broader trade concerns slated for a later stage. The official noted that progress has been significant and both sides &ldquo;could soon agree&rdquo; on the first phase.
In the opening round, both nations are expected to resolve tariff-related disputes, addressing long-standing concerns over duties on key exports. The second phase of the deal will likely include negotiations on services, digital trade, and non-tariff barriers, areas that have seen prolonged disagreement in past talks.
This phased approach marks a strategic shift in India-US trade negotiations. &ldquo;We are keen to first close the tariff chapter before moving on to more complex issues,&rdquo; the official said. &ldquo;We should get a closure soon.&rdquo; The deal is being viewed as a step toward unlocking deeper economic cooperation between the world&rsquo;s two largest democracies.
The impending pact comes as India recently signed a landmark agreement to source 10% of its annual liquefied petroleum gas (LPG) imports from the US. Officials say these developments reflect a broader realignment in trade and energy ties between New Delhi and Washington, reinforcing mutual strategic and economic interests.

Bilateral trade deal to begin with tariff resolution; wider issues to follow in II phase

India-US Set for Two-Phase Trade Pact

Bilateral trade deal to begin with tariff resolution; wider issues to follow in II phase

November 17, 2025 | 23:42 IST