A long-awaited India-US trade agreement could be signed within the next three to four months, with negotiations between the two countries now virtually complete, a senior US official said on Wednesday.Speaking on the sidelines of the Asean Foreign Ministers’ meeting in Manila, the official said the text of the agreement has effectively been finalised and that the remaining delay is linked to ongoing US trade investigations rather than unresolved issues between Washington and New Delhi.“The deal… is there. We literally have the paper,” the official told Reuters on condition of anonymity.Asked when the agreement could be concluded, the official said: “Maybe another three, four months.”
Section 301 probes remain the final hurdle
According to Reuters, the key obstacle to signing the agreement is Washington’s completion of its ongoing Section 301 trade investigations, which examine alleged unfair trade practices and empower the US government to impose tariffs or other retaliatory measures.The official said one of the Section 301 investigations, covering around 60 countries, is expected to conclude this week or next.“Once that and other ongoing investigations are completed, we’ll start seeing progress, not just in India but in other places,” the official said, as quoted by Reuters.The official stressed that the bilateral trade agreement itself is nearly complete and that the remaining delay is procedural rather than the result of differences between the two countries.India and the US have been negotiating a bilateral trade agreement aimed at expanding market access, lowering trade barriers and deepening economic ties.
Tariffs and pharma exports remain key concerns
The comments come even as trade tensions continue over separate US tariff measures.Washington has already proposed new tariffs of up to 12.5% on dozens of countries, including India, over allegations that they failed to curb trade in goods produced using forced labour.The proposal is linked to the ongoing Section 301 investigations and has not yet been finalised.Separately, US President Donald Trump announced on Tuesday that generic medicines imported into the United States will remain exempt from tariffs for two years beginning August 1.After that period, such imports would face tariffs of 100% for one year and 200% thereafter.The move could significantly affect India’s pharmaceutical sector as New Delhi is the most exposed among generic drug exporters.The United States accounted for nearly $9.7 billion, or about 38%, of India’s total pharmaceutical exports worth $25.8 billion in 2025.
Framework agreement already ready
The latest timeline broadly aligns with statements made by Indian officials in recent weeks.Earlier this month, an Indian official quoted by news agency PTI had said the framework agreement between the two countries was ready and awaiting signing “at the right time”, while negotiations on the broader Bilateral Trade Agreement (BTA) were progressing smoothly.The official had also said both sides clearly understood the contents of the framework agreement and the issues being negotiated under the wider BTA, adding that there were no major differences holding up the talks.The report also noted that India is seeking a tariff structure under the proposed agreement that would give it a comparative advantage over competing exporting nations while securing better market access for Indian businesses.
