India-US Trade Deal Could Put Bilateral Ties on Better Track: Jaishankar

S Jaishankar said a near-final India-US trade deal could improve bilateral ties, but shifting US tariff rules remain a factor in closing the pact.

By All India Story

29 Sep 2026, 1:58 PM IST Updated 3 hr ago 2 min read

S Jaishankar discusses the India-US trade deal and ongoing tariff negotiations — S Jaishankar says a near-final India-US trade agreement could help improve bilateral ties.

External Affairs Minister S Jaishankar said the India-US trade deal could help put bilateral relations on a better track if it is concluded. Speaking at an Asia Society event in New York, Jaishankar said the two countries had reached a broad understanding, but the negotiations had taken longer than initially expected because of their complexity.

He pointed to differences between the two economies, including India's large base of small producers, farmers and factories, as factors requiring detailed negotiations. Jaishankar said expectations of a quick agreement had been tested by the ground realities of the talks.

US tariff changes complicate timing

According to Jaishankar, the trade agreement is now “very, very far advanced”, but changes in US trade policy have complicated the question of when it should be finalised. The ongoing Section 301 process is one of the issues being considered by India.

The US announced final Section 301 measures in July 2026 following an investigation into policies related to goods produced with forced labour. India was placed in a lower tariff tier, with an additional 10% duty applying to covered imports. The Indian government said several categories remained outside the additional duty.

India and the US had announced a framework for the first phase of their bilateral trade agreement in February. Negotiations have continued as Washington's tariff framework evolved.

Trade remains central to bilateral ties

Jaishankar said completing the agreement could remove one of the difficulties that affected the relationship over the previous year. However, he also noted that India-US ties involve wider issues, including mobility and changing public opinion.

India's Commerce and Industry Minister Piyush Goyal is scheduled to visit the US from September 29 to October 5 for trade-related discussions, including talks with US Trade Representative Jamieson Greer.

The agreement has not yet been formally concluded, and its final terms and implementation timeline remain subject to ongoing negotiations.