India and the United States are on the verge of finalizing a trade deal, with both sides now beginning work on drafting the legal text. According to a senior government official, the latest round of discussions in Washington showed convergence on most issues, suggesting that the long-pending agreement could be concluded soon, although it will still require final political approval.

The official noted that the two sides are very close to a deal, with few differences remaining, and that discussions have progressed well, with common ground found on most outstanding matters. However, some issues, particularly those related to non-tariff barriers, remain unresolved. The US has expressed concerns about India’s Quality Control Orders, which it views as obstacles for American exporters.

At present, teams from both countries are engaged in virtual discussions, while the schedule for the next round of in-person talks has yet to be decided. Last week, a team of Indian commerce officials, including Commerce Secretary Rajesh Agrawal, visited Washington to push for an early conclusion of the proposed agreement. The talks concluded late last week, and the delegation returned over the weekend.

Despite the progress, a final deal was not reached. Speculation had arisen that Prime Minister Narendra Modi and US President Donald Trump might hold a bilateral meeting at the 47th ASEAN Summit to announce the agreement, but Modi later confirmed he would attend the summit virtually, ruling out any in-person meeting with Trump. As previously announced by Modi and Trump in February, the deadline for the first phase of the Bilateral Trade Agreement continues to remain set for the fall of 2025.