India-US Trade Agreement in Final Stages, but Challenges Remain, Jaishankar Says

NEW DELHI — India’s External Affairs Minister S. Jaishankar said Thursday that negotiations over a proposed trade agreement between India and the United States have entered their final stages, although unresolved issues remain and a deal cannot be considered complete until both sides formally reach an agreement.

Speaking at the NDTV World Summit in New Delhi, Jaishankar described the negotiations as being in the “last mile,” reflecting growing expectations that the two countries are approaching a breakthrough in their long-running trade discussions.

He said recent statements by U.S. Secretary of State Marco Rubio and Indian Commerce Minister Piyush Goyal also suggested that the negotiations were nearing completion.

“What you’ve heard not just from Secretary Rubio, but from Minister Piyush Goyal, from others, from me, is that we are moving towards it,” Jaishankar said.

However, he cautioned against assuming that an agreement was inevitable before the remaining differences were resolved.

“Well, look, it’s never done till it’s done,” he said.

Jaishankar acknowledged that the final stages of trade negotiations can be particularly difficult, even when the parties have reached broad agreement on major issues.

“Often the last mile or the penultimate miles do pose their challenges. I think the [negotiating] teams are working through them now,” he said.

When asked about the specific obstacles preventing a final agreement, the foreign minister declined to disclose details, emphasizing that resolving those differences was the responsibility of the negotiating teams.

“If you’re asking me to tell you what exactly those challenges are, I’m sorry I won’t. That’s for the negotiators to sort out,” he added.

The comments come amid renewed diplomatic engagement between New Delhi and Washington, with senior officials from both countries expressing optimism about strengthening economic ties.

A bilateral trade agreement is widely viewed as an important step toward expanding commercial relations between the world’s two largest democracies.

Both governments have been working to deepen cooperation in areas including trade, energy, technology and defense, while addressing longstanding commercial differences.

Jaishankar’s remarks followed his recent meeting with Rubio in Mumbai, where the two leaders discussed bilateral priorities and regional developments.

According to the U.S. State Department, the talks included energy security, defense cooperation and developments in West Asia.

“The secretary reiterated that increased energy trade with the United States can play a transformative role in diversifying India’s supply chains while meeting its sizable consumer demand,” the State Department said.

Rubio also welcomed progress in bilateral defense and civil nuclear cooperation and encouraged India to increase purchases of American technology and defense systems.

The discussions underscored Washington’s interest in expanding its role as a supplier of energy, advanced technologies and defense equipment to India.

U.S. Ambassador to India Sergio Gor, who attended the meeting, described the discussions as “productive” and highlighted the growing momentum behind cooperation in several strategic sectors.

Gor said the talks focused on strengthening ties in defense, energy, emerging technologies and trade as the two countries seek to advance their broader strategic partnership.

The renewed diplomatic activity has added to expectations that a trade agreement could be finalized soon, although neither government has announced a signing date.

Jaishankar’s comments suggest that while negotiations have made substantial progress, both sides remain focused on resolving outstanding differences before making a formal announcement.

For now, the Indian government maintains that the agreement is moving closer to completion, with negotiators continuing their efforts to bridge the remaining gaps. (Source: IANS)