Most issues resolved, India expects US trade pact by year-end

India expects to finalise a trade agreement with the United States before the end of this year, with most issues already resolved, trade secretary Rajesh Agrawal said on Friday, according to Reuters.

Speaking at the Ficci annual general meeting on Friday, Commerce and Industry Minister Piyush Goyal said India is negotiating free trade agreements with several partners, including the US and the European Union, as part of its strategy to strengthen ties with “trusted” countries.

“We have all seen trade being weaponised. We have all seen the importance of having trusted partners around the world,” he said, adding that India is currently in talks with individual countries and blocs totalling about 50.

The comments come amid major global disruptions caused by steep US tariff hikes. The Donald Trump administration has imposed a 50 per cent import duty on Indian goods entering American markets since 27 August.

Goyal said the Gulf Cooperation Council (GCC) has also expressed interest in pursuing a trade pact, reported PTI. The GCC comprises Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain. India already has a comprehensive agreement with the UAE, talks with Oman are nearing completion, and Bahrain and Qatar have signalled readiness to begin negotiations. “The whole six-nation group would like to engage,” he said.

He added that India is also in discussions with New Zealand, the 27-nation EU and is actively negotiating a bilateral trade agreement with the US. Six rounds of India-US negotiations have been completed so far, with both sides aiming to conclude the first phase of the agreement by the fall of this year.

Goyal said India is reviewing its trade pacts with ASEAN and Korea to bring “more balance.” ASEAN members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

India is also working with the Eurasian Economic Union (EAEU), which launched negotiations earlier this week. The EAEU includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. India and the grouping signed the terms of reference for the pact on 20 August.

Talks with Israel are expected to begin “very quickly,” he said. India and Canada are preparing to restart discussions on a Comprehensive Economic Partnership Agreement (CEPA), with a conversation scheduled for next week. Both sides have set a target to raise bilateral trade to USD 50 billion by 2030. Canada had paused trade talks with India in 2023.

Several other blocs have shown interest in engaging with India, including the South African Customs Union (SACU) — South Africa, Namibia, Botswana, Lesotho and Eswatini — and the Mercosur group, comprising Brazil, Argentina, Uruguay and Paraguay.

India has already implemented trade agreements with multiple countries, including Singapore, Japan, Korea, Malaysia and Australia. Such agreements typically involve reducing or eliminating import duties and easing rules to support the movement of professionals and investment flows.

(With inputs from agencies)