India Set to Finalize First Phase of Trade Deal with U.S. by Fall, Says Finance Minister Sitharaman #IndiaFinance

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San Francisco– Finance Minister Nirmala Sitharaman announced on Monday that India is on track to finalize the first tranche of a bilateral trade agreement with the United States by this fall, marking a significant milestone in economic relations between the two countries.

Speaking at an event with the Indian diaspora at the India Community Center in San Francisco, Sitharaman emphasized the strategic importance of strengthening ties with the U.S., which remains India’s largest trading partner.

“Our engagement with the U.S. goes well beyond reciprocal tariffs,” she said. “The United States is a vital economic partner, and we’re working diligently to conclude the initial phase of the bilateral trade agreement by the fall—between September and October.”

The announcement comes as U.S. Vice President J.D. Vance visits India for high-level meetings with Prime Minister Narendra Modi, signaling momentum on both sides to advance trade negotiations. Sitharaman noted that Assistant U.S. Trade Representative (USTR) officials have already visited India to review progress and engage with India’s negotiating team.

Earlier this year, President Donald Trump and Prime Minister Modi agreed to initiate formal talks for a Bilateral Trade Agreement (BTA) as part of “Mission 500,” an initiative aimed at doubling bilateral trade to $500 billion by 2030.

During her remarks, Sitharaman also highlighted India’s growing recognition on the global stage for its economic strength and potential. She urged the Indian-American community to actively collaborate with India in its development journey.

“India is now the world’s fastest-growing economy, propelled by the visionary leadership of Prime Minister Modi and the policy stability that comes from a consistent, forward-looking government,” she said. “Global institutions like the IMF and World Bank recognize India’s capacity to drive global trade growth.”

Sitharaman also provided an update on India’s fiscal policy, noting the country’s disciplined approach to deficit management. “During the COVID-19 pandemic, our fiscal deficit naturally rose. But beginning in 2021, we laid out a clear path to reduce it. We’ve set annual targets and remain committed to bringing the deficit below 4.5% of GDP by 2026—and we’ve been meeting our goals each year without fail.”

The Finance Minister is currently on a five-day trip to the United States, where she will deliver a keynote address at Stanford University, meet with top CEOs in San Francisco to discuss investment and technology, and participate in cultural and diaspora events.

In Washington D.C., she will attend the Spring Meetings of the International Monetary Fund and World Bank, as well as the G20 Finance Ministers and Central Bank Governors meetings. She is also scheduled to hold bilateral discussions with finance ministers from the U.S., U.K., France, Germany, Saudi Arabia, and other nations, in addition to engaging with leaders of key international financial institutions.

Following her U.S. visit, Sitharaman will travel to Peru from April 26 to 30 for additional diplomatic engagements. (Source: IANS)

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