Indian Commerce Secretary Rajesh Agrawal has confirmed that during the latest round of talks from 8th to 11th December 2025 in Delhi, officials from both the US and India have reached the final stage of completing the initial trade deal. The India-US free trade agreement could not be achieved due to differences, but the two countries have decided to start with an initial bilateral trade agreement to largely get rid of the 50% tariffs imposed by the US on Indian exports in August 2025.

Agrawal told the media that India and the U.S. are “very close” to an initial trade agreement on reciprocal tariffs. Although the top trade official refused to put a deadline even on the initial agreement, it is learned that that agreement could be announced within weeks. 

There was anticipation since the February 2025 visit of Indian Prime Minister Narendra Modi to the USA and his meeting with the second-term President Donald Trump that the Terms of Reference signed in March 2025 had become the basis for an FTA in the middle of 2025. Instead, President Trump imposed tariffs, blaming India for unfair trade practices. The Indian Commerce Secretary insisted that an interim framework deal could deal with reciprocal tariffs to keep moving forward instead of a stalemate on a full-blown FTA. 

Similarly, another pending trade deal is with the European Union. Agrawal said a similar approach was taken to strike off the resolved issues and get down to the topics where differences need to be overcome in phases. 

Negotiations with the Eurasian Economic Union (EAEU), which includes Russia, are at an early stage, and the next round of negotiations is slated for February 2026.

India and New Zealand conducted the fourth round of talks in November 2025 during the visit there of Commerce and Industry Minister Piyush Goyal. Discussions are good, and the FTA should be finalized soon, said Agrawal.