India-U.S. trade deal forged as talks outlast rhetoric

The trade agreement announced by Prime Minister Narendra Modi and U.S. President Donald Trump on Monday follows a prolonged negotiating process marked by public confrontation, sustained technical engagement, and a clear economic calculation in Washington over the costs of delay.

- ABHINANDAN MISHRA

According to official data published by the Office of the United States Trade Representative (USTR), total U.S.-India goods and services trade stood at about USD 212 billion in 2024. U.S. exports to India were valued at roughly USD 41.5 billion, while imports from India were estimated at USD 87.3 billion, leaving the United States with a persistent trade deficit.

These figures formed the baseline for the Trump administration's push for tariff rebalancing and expanded market access.The negotiations were formally anchored in a framework announced by the USTR in April 2025, when both sides agreed on the Terms of Reference for a proposed bilateral trade agreement. The framework covered tariffs, customs procedures, non-tariff barriers, technical standards and aspects of digital trade. While not a binding treaty, it provided the institutional structure for multiple rounds of talks through 2025.

Progress remained uneven. Senior Indian officials had indicated last year, at an informal interaction, that discussions had reached an impasse and that New Delhi was unwilling to pursue a comprehensive free trade agreement if its red lines on sensitive sectors and regulatory autonomy were crossed. Officials say that position remained unchanged despite intermittent escalation in public rhetoric from Washington.

The Indian negotiating team was led by Commerce and Industry Minister Piyush Goyal. On the US. side, talks were conducted by the USTR, with Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia, leading negotiations with Indian counterparts.