India to work to finalize a new trade deal with the US during 90-day US tariff pause

An Indian trade official said Friday that a mutually beneficial trade deal with the United States could be reached within the next 90 days, following recent developments in U.S. trade policy.

On Wednesday, U.S. President Donald Trump announced a 90-day pause on most planned tariff increases for key trading partners, including India, while simultaneously raising tariffs on China. The decision offered temporary relief to Indian exporters.

In February, India and the U.S. agreed to work on the first phase of a trade agreement, with the goal of concluding it by the end of the year. The two countries aim to boost bilateral trade to $500 billion by 2030.

“We are far ahead in trade talks with the U.S. compared to other countries … there are lots of possibilities in 90 days,” said the Indian official, who requested anonymity due to the sensitivity of the matter.

Reuters reported Thursday that India is seeking to move swiftly toward finalizing a deal in light of the temporary tariff pause.

According to the official, discussions between the two countries will continue virtually on a regular basis, and there may be delegation-level visits from both sides to support the negotiation process. U.S. Vice President JD Vance is also expected to visit India soon, the official added.

Earlier this month, the Trump administration announced a 26% tariff on Indian goods. In response, India stated that it would not pursue retaliatory measures.

Bilateral trade between the two nations reached approximately $129 billion in 2024, with India holding a trade surplus of $45.7 billion.

India has instructed its customs authorities to intensify scrutiny of exports and imports to prevent the country from being used as a transit point to reroute goods into the U.S., the official said.

To support exporters and importers, India has launched a global tariff and trade helpdesk, the Directorate General of Foreign Trade announced in a notice. The helpdesk will address issues such as import surges, dumping, supply chain disruptions, and financial difficulties.

Trade analysts have warned that, following Trump’s significant tariff increases on China, some companies may attempt to reroute exports through India to access the U.S. market.

“Neither will India be the source of trade diversion for our products, nor will it become a safe haven for others to divert through India,” the official said.

“India wants to remain a trusted trading partner. This is the message of Prime Minister Narendra Modi to all government officials and industry.”

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