The United States ambassador to India, Sergio Gor, has declared that a long-delayed bilateral trade agreement between India and the US is nearly complete, with negotiations now in the final 1 to 2 percent of the process. The statement signals that a deal that has remained in limbo for several years could finally be concluded soon.
India and the US have been negotiating this trade pact since 2021, but progress has been slow and frequently interrupted by disagreements over key sectors. The main points of contention have centered on agricultural products, pharmaceutical standards, movement of Indian professionals, and tariff structures. Neither side has been willing to make major concessions on sectors considered strategically important to their own economies.
The delay has created ongoing uncertainty for Indian exporters and businesses that depend on the American market. India exports roughly USD 50 billion worth of goods and services to the US annually, including textiles, pharmaceuticals, agricultural products, and IT services. Without a finalized trade agreement, companies remain uncertain about what tariffs and regulations will apply to their exports, making long-term planning difficult.
The US side has consistently pushed for greater access to Indian agricultural and dairy markets, seeking to reduce tariffs that protect Indian farmers. The Indian government has resisted these demands to protect its farming sector, which employs hundreds of millions of people. India has countered by demanding easier movement and work visas for Indian professionals, particularly in IT and services sectors, but the US has been reluctant to commit to this.
A completed trade agreement would provide clarity that has been missing for years. However, history shows that when such negotiations remain incomplete for this long, significant issues usually still remain unresolved. The final 1 to 2 percent often takes far longer than expected because both sides are still negotiating the most difficult compromises.
If the deal is finalized in the coming months, its effects will be mixed across different sectors. Some Indian industries may gain market access and lower tariffs, while others could face new barriers. Farmers, pharmaceutical companies, IT firms, and textile exporters will all be affected differently depending on what is finally agreed. The ambassador’s optimistic timeline suggests both countries want to reach a conclusion, but the real test will be whether a final agreement actually emerges soon.
Source: ET Economy
