According to a senior government official, any trade agreement between India and the United States this year would be a “mini-deal.” The official also stated that the two countries are still a long way from reaching a comprehensive agreement.
This occurs at a time when U.S. Secretary of Commerce Howard Lutnick has stated that a trade agreement between the United States and India will emerge in the “not too distant future.”
The senior government official informed The Hindu that the two nations are still a long way from reaching a comprehensive agreement. “However, the two leaders [Prime Minister Narendra Modi and US President Donald Trump] are dedicated to presenting something by the fall of this year, so that is the endeavor.”
Fall in the United States is typically observed from September to November.
“Initially, the official clarified that any agreement that is announced this year will be restricted to specific sectors. “Trade negotiations typically last for an extended period of time.” Furthermore, the situation becomes even more intricate when it pertains to transactions between substantial economies such as the United States and India. Therefore, you will receive a small deal.
The Hindu has also learned that the Ministry of Commerce and Industry is internally deliberating on how to address the increased tariffs imposed by the Trump administration on steel and aluminum. Another official indicated that a stakeholders consultation meeting is probable.
Mr. Trump announced on May 31 via his Truth Social account that he would increase import tariffs on steel and aluminum from the current 25% to 50%, effective June 4.
The Indian government had already notified the World Trade Organization that it reserves the right to impose retaliatory tariffs on the United States in response to the 25% rate on steel and aluminum imports that had been in place since March 2025, even prior to this increase.
The second official stated, “The government is currently investigating the possibility of incorporating this into the trade deal negotiations or addressing it separately in the wake of the most recent increase [to 50%].”
