India is poised to become the first country to sign a bilateral trade agreement with the United States under the new American trade framework, according to The Economic Times. US Treasury Secretary Mr. Scott Bessent indicated that India’s low tariffs, minimal non-tariff barriers, and transparent regulatory environment make it an ideal candidate to conclude the deal ahead of others.
The development comes as a 90-day suspension of proposed 26% reciprocal tariffs on Indian exports is set to expire on July 8, 2025. As reported by The Economic Times, the proposed agreement will include 19 chapters covering tariffs, digital trade, customs, and regulatory practices.
The Indian delegation, led by Chief Negotiator Mr. Rajesh Agarwal, Additional Secretary, Ministry of Commerce and Industry, began talks in Washington on 23 April. Hon’ble Finance Minister Smt Nirmala Sitharaman, during her recent US visit, reaffirmed India’s commitment to finalising the first phase of the agreement by autumn, The Economic Times noted.
The US aims to enhance market access in sectors like energy and defence, while India is seeking greater access for its exports, including textiles, leather, and gems and jewellery. With bilateral trade standing at $129 billion in 2024—$45.7 billion in India’s favour—both countries aim to double this to $500 billion by 2030.
For India’s gem and jewellery industry, the agreement could bring substantial benefits through reduced duties and streamlined customs, enhancing export competitiveness in the US—a key market for the sector.
As per The Economic Times, negotiations are progressing steadily, and a successful outcome could usher in a new era of trade cooperation between the world’s largest and most dynamic democracies.