India poised to conclude first part of trade pact with US soon, Says FM Sitharaman

Finance Minister Nirmala Sitharaman on Monday said that India is in active negotiations with the new US administration and hopes to conclude the first phase of a bilateral trade agreement by this fall, possibly in September or October.

In an event attended by the Indian diaspora in San Francisco, Sitharaman pointed to the overall strategic significance of the trade talks beyond mere mutual tariffs. "The long and short of dealing with the US is not just for this reciprocal tariff-related issue, but the nation is also our largest trading partner whom we have to have an agreement with," she said.

Earlier this year in 2025, US President Donald Trump and Prime Minister Narendra Modi had decided to begin negotiations for a Bilateral Trade Agreement (BTA). This move is part of the overall scheme of "Mission 500," an ambitious goal to increase India-US trade to $500 billion by 2030.

Sitharaman noted the government's consistent efforts to strengthen relations with the United States, citing high-level interactions currently in progress. "With the urgency with which we are interacting with the US administration, as I speak, I believe that the Vice President of the United States of America (J.D. Vance) is in India, he will be interacting with the Prime Minister, hopefully this evening or tomorrow.". Between all this, the Assistant USTR had also come to India to observe the progress or to meet with the negotiating team which is handling the tariff-related negotiation and the bilateral trade agreement which we intend to sign. Actually, the progress of the agreement or the trade agreement that we are engaging in, at least a first tranche is something which we wish to close positively by this fall this year," she said Sunday evening (IST on Monday morning) at the India Community Centre in San Francisco.

During her visit, the Finance Minister will also meet US Treasury Secretary Scott Bessent and interact with officials in the office of the United States Trade Representative (USTR).

She also used the occasion to highlight India's increasing economic clout on the global stage and urged members of the Indian-American community to be part of India's development narrative. "When we mention that India is the fastest-growing economy and when the IMF and World Bank acknowledge that India can be the driver of global trade, what they are acknowledging is the huge potential that lies in India," she said.

Attributing India's economic upsurge to the leadership of Prime Minister Modi and the political stability of his administration, Sitharaman further stated that the trajectory of the country is gaining global acclaim.

Referring to fiscal reforms, she emphasized India's prudent way of taking care of its financial health in the post-pandemic period. "During the Covid-19 pandemic, our fiscal deficit increased. But in 2021, we sent out a clear message as to how we wanted to control our fiscal deficit. We laid down year-on-year targets and promised to bring the fiscal deficit below 4.5 per cent by 2026. And that's what we have been adhering to every year without fail," she added.

Sitharaman is on a five-day trip to the United States now. She has in her agenda a keynote speech at Stanford University and interaction with business chiefs in San Francisco to discuss avenues of investment and technology. The visit also includes diaspora outreach programs to reinforce India's cultural and economic presence abroad.

After her meetings in San Francisco, she will travel to Washington DC for the IMF and World Bank Spring Meetings, and for the G20 Finance Ministers and Central Bank Governors meetings. She will also conduct bilateral meetings with finance counterparts of countries such as the US, UK, France, Germany, and Saudi Arabia, and senior representatives from major global financial institutions.

Following the schedule of completing her US tour, Sitharaman will visit Peru from April 26 to 30 for additional official activities.