New Delhi, January 28, 2026 — India is poised to finalize a bilateral trade agreement with the United States, building momentum after concluding a sweeping trade deal with the European Union. Sources indicate the U.S. agreement could be signed “any day now,” following substantial progress during ongoing negotiations.
India Eyes U.S. Trade Deal After ‘Mother of All Deals’ with EU
A landmark trade agreement with the EU has cleared the way for India to focus on finalizing a similar pact with the United States, potentially doubling bilateral trade by 2030.
- India recently completed negotiations on a Free Trade Agreement (FTA) with the European Union.
- The India-U.S. Bilateral Trade Agreement (BTA) aims to increase trade from $191 billion to $500 billion by 2030.
- U.S. President Donald Trump expressed confidence in a “good deal” with India during the World Economic Forum in Davos.
- The remaining steps to finalize the U.S. deal are described as “just the dotting of the Is and the crossing of the Ts.”
The Ministry of External Affairs confirmed that negotiations with the U.S. progressed alongside those with the EU. Officials described the final stages as largely procedural, focusing on finalizing details.
Q: What is the projected increase in trade between India and the U.S. if the BTA is finalized?
A: The BTA aims to more than double bilateral trade, increasing it from the current $191 billion to $500 billion by the year 2030.
During his appearance at the 56th Annual Summit of the World Economic Forum in Davos on January 21, President Trump voiced optimism about the prospective trade agreement. “I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine, and we are going to have a good deal,” Trump told Moneycontrol when asked about the India-U.S. trade deal.
Rajesh Agrawal, India’s Commerce Secretary, previously stated that the first phase of the BTA was “very near,” though he did not provide a specific timeline. The BTA, initially proposed in February following directives from both nations’ leadership, seeks to dramatically expand economic ties.
On January 9, the Ministry of External Affairs reiterated India and the United States’ commitment to negotiating the bilateral trade agreement, noting that multiple rounds of discussions had been held to achieve a mutually beneficial outcome.
U.S. Trade Representative Jamieson Greer lauded the India-EU trade deal, suggesting India emerged as the primary beneficiary. “EU is turning to India to try to find a place. The EU is so trade-dependent they need other outlets if they can’t keep sending all their stuff to the United States. I’ve looked at some of the details of the deal so far. I think India comes out on top on this, frankly,” Greer said in an interview with Fox News.
Greer highlighted India’s potential gains, including increased access to European markets and expanded mobility provisions for Indian workers. He also pointed to India’s competitive advantages, such as its lower labor costs and expanding manufacturing sector. “They get more market access into Europe. It sounds like they have some additional immigration rights… So, I think on net, India’s going to have a heyday with this,” he added.
Greer also addressed the issue of India’s continued purchase of Russian oil, stating that the U.S. expects India to reduce these purchases. “They have made a lot of progress on this… They like the discount that you get from Russian oil, so it’s hard for them. The Treasury Department has put into place… more significant sanctions, so we expect India to continue to wind that down, but we’re watching it closely,” he said.
With the EU deal finalized, all eyes are now on a potential announcement regarding the India-U.S. trade agreement.
