A long-anticipated trade agreement between India and the United States is on the cusp of completion, with a senior US State Department official indicating the deal is "90 per cent-plus there." This potential breakthrough, announced on September 26, 2026, is expected to "unleash another level" in the bilateral relationship, which has historically seen trade as a significant sticking point.
Final Hurdles for the India-US Trade Deal
While the exact signing date remains unconfirmed, the official expressed optimism, stating, "I hope you're going to see something very soon on that." This sentiment was echoed by India's Commerce and Industry Minister Piyush Goyal, who recently declared the India-US pact "almost done and dusted." Goyal noted that negotiations aim to secure competitive advantages, allowing for swift execution of the agreement.
The framework for the initial phase of the bilateral trade agreement was first established in February. However, adjustments in the US tariff landscape necessitated further negotiations, which now appear to be nearing a successful conclusion.
Diplomatic Momentum and Broader Trade Ambitions
The impending trade deal coincides with a busy diplomatic calendar for both nations. US Secretary of State Marco Rubio is scheduled to visit India in October, followed by Prime Minister Narendra Modi's expected attendance at the G20 Summit in Florida in December. Furthermore, the foreign ministers of the Quad countries (US, India, Australia, Japan) are set for their third meeting this year, an unprecedented frequency underscoring the importance of the grouping.
Beyond the US, Minister Goyal highlighted India's broader trade strategy, including the finalization of nine free trade agreements. He stated that these pacts would eventually provide India with preferential access to markets accounting for approximately 75 per cent of global GDP. Goyal also clarified India's decision to remain outside the Regional Comprehensive Economic Partnership (RCEP), citing concerns about effectively entering a free trade agreement with China.
Focus on IMEC and Future Engagements
The India-Middle East-Europe Economic Corridor (IMEC) remains a "huge priority" for both the US and India. While both sides are prepared to advance, progress has been tempered by ongoing instability in the Middle East, requiring regional partners to resolve their components of the ambitious infrastructure project.
Minister Goyal is also set to visit the US for the G20 Trade Ministerial in Milwaukee, Wisconsin, from September 30 to October 1. During this visit, he is scheduled to meet with US Trade Representative Jamieson Greer, where progress on the bilateral trade talks is expected to be a key discussion point.