India expects to sign trade agreement with US in 3 phases

Indian authorities plan to negotiate a bilateral trade agreement with the United States in three phases, Bloomberg reports, citing sources from the Indian government.

According to reports, the first phase will be a provisional agreement, which New Delhi hopes to reach by July, coinciding with the implementation of reciprocal tariffs by U.S. President Donald Trump. This phase is likely to include sectors such as industrial goods, certain agricultural products, and the removal of some non-tariff barriers.

As the agency notes, negotiations are still ongoing, and it remains unclear whether the Trump administration has agreed to a three-phase process for concluding a trade deal or not. Indian Minister of Trade and Industry Piyush Goyal, currently in Washington, stated on X that he had “good discussions” with U.S. Trade Secretary Howard Lutnick regarding the progress of the first phase of the trade agreement.

The second phase of the India-U.S. agreement could lead to broader and more detailed accords, expected to be signed in the fall. The timing of this phase may be agreed upon during Trump’s upcoming visit to India.

The final phase of the deal is likely to be a comprehensive agreement, which would come into effect after approval by the U.S. Congress. Indian officials indicated that it might not be finalized until next year.

India and the U.S. reached an understanding in February, during Prime Minister Narendra Modi’s visit to Washington, to negotiate the first phase of a trade agreement aimed at increasing bilateral trade volume to $500 billion by 2030.

On April 2, Trump announced tariffs on goods imported from 185 countries and territories. On April 5, a 10% general tariff was implemented, followed by individual tariffs on April 9. India’s tariff rate currently stands at 26%.

On April 9, Trump announced a 90-day suspension of tariff increases against 75 countries willing to negotiate.