US trade negotiators are in India to resolve differences; tariff talks delayed, but an agreement may conclude year-end
NEW DELHI
India’s Chief Economic Adviser, V. Anantha Nageswaran, said he would be surprised if an India-US trade deal isn’t signed by March 2026, as most trade-related issues have been resolved. The deal is seen as crucial for India to secure relief from Washington’s 50% punitive tariffs.
“I was hoping something would be done by the end of November, but it has turned out to be elusive,” Nageswaran told Bloomberg TV. He added that the negotiations are influenced by geopolitics as much as bilateral trade, making precise timelines difficult.
A team of US trade negotiators is currently in India to resolve differences and finalise the deal. The first tranche, covering tariff rates, was originally scheduled to conclude this fall but was delayed. Officials remain optimistic that the initial agreement could be finalised before the end of the year.
Despite trade uncertainties, Nageswaran noted that India’s domestic economy is performing well. Exporters have mitigated the impact of US tariffs by diversifying into other markets. Structural reforms over the past decade have strengthened potential growth, while consumption demand and the rural economy remain robust.
The Chief Economic Adviser also commented on the weaker rupee, which he estimates has lost 5%–15% against India’s trade competitors. He said this has been beneficial for exports, cushioning the economy amid global uncertainties.
“The economy has surprised us with better performance than anticipated earlier in the year,” Nageswaran said, adding that he expects high growth with moderate inflation for 2026–27.
With negotiations progressing and most major issues resolved, India and the US are on track to seal a trade deal that could significantly boost bilateral trade and ease tariff-related pressures in the coming months.
