India is optimistic about finalizing a “framework trade deal” with the United States by the end of this year, aiming to resolve the reciprocal tariff issues affecting Indian exports, Commerce Secretary Rajesh Agrawal said on Friday. He emphasized that the agreement would be “meaningful” for Indian exporters only if it addressed both tariffs introduced in August — the 25% reciprocal tariff and an additional 25% duty tied to India’s imports of Russian oil. “We are close and have managed to resolve most issues,” Agrawal said at the 98th Ficci annual meeting. Agrawal added, “It’s only a matter of time before this decision is made. Multiple levels will need to approve it. There isn’t much left to negotiate; only a few issues require a political decision.”

Earlier this year, in February, Prime Minister Narendra Modi and US President Donald Trump had announced plans to finalize the first phase of a Bilateral Trade Agreement (BTA) by fall 2025, though that timeline now seems uncertain. According to Agrawal, discussions with the US are proceeding on two parallel tracks: the broader BTA, which will take longer, and the framework deal that would address the 50% tariff burden on Indian exporters. “These negotiations are separate but interconnected. The framework trade deal addressing reciprocal tariffs needs to come first,” he noted, adding that India will continue to uphold its core concerns and non-negotiables.

Commerce and Industry Minister Piyush Goyal, speaking at the same event, stressed the importance of reliable trading partners amid a volatile global trade environment. “We’ve seen trade being weaponized and the importance of trusted partners,” he said, noting that India is currently negotiating with around 50 countries and blocs.

Goyal also highlighted renewed interest from the six-nation Gulf Cooperation Council, with negotiations with Oman nearly complete and Bahrain and Qatar engaging actively. India has already finalized a comprehensive trade pact with the UAE and is exploring deals from the Gulf to New Zealand to expand its network of dependable partners.

The minister added that India is in active discussions with both the US and the 27-nation European Union. Agrawal noted that talks with the EU are in their final stages and could conclude by January 2026. Agrawal also mentioned that India-US negotiations have been ongoing virtually and regularly since March, with six rounds completed so far. The most recent informal round took place from 15–17 October in Washington, and further discussions may involve a Washington-based team visiting New Delhi.

Despite high tariffs and no finalized deal, India’s exports to the US have grown by $10 billion this year, driven in part by industry efforts to diversify. Domestically, India’s trade deficit reached a record $41.68 billion in October, largely due to a threefold surge in gold imports and a decline in outbound shipments. However, Agrawal said the deficit is not yet “worrying,” explaining that the rise was primarily due to higher precious metal imports, offset somewhat by lower energy prices.