New Delhi: The long-awaited India-US trade deal is close to being finalised, with almost all major elements agreed “in principle,” US Ambassador to India Sergio Gor has said, signalling that negotiations between New Delhi and Washington have entered their final technical stage.
Speaking at The Economic Times World Leaders Forum, Gor said the remaining work largely involves reconfiguring and finalising the legal text of the agreement rather than resolving major policy differences.
Most of the Trade Deal Agreed In Principle
Gor said that almost everything related to the proposed bilateral trade agreement has already been settled in principle.
According to the ambassador, the delay in formally concluding the agreement is largely because negotiators are working through the legal and technical language of the deal.
The development is significant because India and the United States have been negotiating for months to create a trade framework capable of expanding market access and reducing barriers between the two economies.
Earlier in June, Gor had described the agreement as approximately 99% complete, saying only a small number of issues remained before it could be concluded.
Final Legal Text Still Being Worked Out
While Gor expressed confidence over the agreement, he did not announce a specific date for its formal signing.
He said the United States is currently reworking parts of the text, indicating that negotiators are focusing on the detailed wording required before the agreement can officially take effect.
This distinction is important: while the political and commercial principles may largely be settled, the agreement is not yet formally signed or fully implemented.
The final document will determine how commitments made by both governments are legally applied.
Trade Relationship Remains Crucial for Both Countries
The United States remains one of India’s most important trading partners and export destinations.
Indian exports to the US include major sectors such as:
- Electronics
- Pharmaceuticals
- Engineering goods
- Textiles and apparel
- Gems and jewellery
- Chemicals
Despite tariff uncertainty over the past year, the US has continued to account for roughly 20% of India’s exports, highlighting the importance of the American market for Indian businesses.
A formal trade agreement could therefore provide greater certainty for companies, exporters and investors operating between the two countries.
Sergio Gor Highlights Strength of India-US Relationship
Gor also emphasised the wider strategic relationship between Washington and New Delhi, saying the partnership between the two countries is expected to play an important role on the global stage.
He highlighted the frequency of visits by senior US officials to India as evidence of Washington’s focus on the relationship.
US Secretary of State Marco Rubio, who visited India for several days in May, is expected to return for another visit in October, according to Gor.
The ambassador described such frequent high-level engagement as unusual and said it reflected India’s importance to the United States.
Gor Highlights Trump-Modi Relationship
The US ambassador also spoke about the relationship between US President Donald Trump and Prime Minister Narendra Modi.
Gor described the two leaders as having a strong personal relationship built around trust and a shared preference for achieving results quickly.
He said President Trump has significant respect for Modi and views the India-US relationship as an important partnership.
High-level political engagement between the two governments is expected to remain an important factor as both sides attempt to complete the trade agreement.
Russian Oil Tariff Debate Also Discussed
Gor also addressed concerns surrounding proposals in the US Congress for steep tariffs on countries that continue purchasing Russian oil.
He sought to distinguish those congressional proposals from the position of the Trump administration.
According to Gor, a proposal targeting countries purchasing Russian oil has received bipartisan support in Congress, but he noted that the White House has not publicly advocated the same approach.
The issue is important for India because New Delhi has continued importing Russian energy while maintaining close economic ties with the United States.
Focus Now Shifts to Formal Conclusion
The latest statement from Sergio Gor provides one of the clearest indications yet that the India-US trade agreement has moved beyond most major negotiating issues.
However, until the final legal text is completed and both governments formally approve and sign the agreement, the deal should still be considered under negotiation rather than completed.
With most elements now agreed in principle and officials focusing on technical language, attention will turn to when New Delhi and Washington officially announce the final agreement.
A successful conclusion could provide greater predictability for bilateral trade while further strengthening economic ties between the world’s largest and fifth-largest economies.
Source – The Economic Times
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