India eyes first phase of trade deal with US by fall: FM

India is working towards finalizing the first phase of a bilateral trade agreement with the US by fall this year, finance minister Nirmala Sitharaman said on Monday during her official visit to the US.

With this agreement, India plans to deepen trade ties with its largest trading partner amid ongoing tariff negotiations.

Sitharaman told the Indian diaspora in San Francisco that the talks with the US are not limited to tariff-related negotiations.

“The long and short of engaging with the US is not just for this reciprocal tariff related matter, but in the interest of… our largest trading partner with whom we need to have an agreement,” she said.

She noted that discussions are underway at various levels, including visits by US officials to India to review progress.

“The keenness with which we are engaging with the US administration, even as I talk…the vice-president of the US is in India, he will be engaging with the prime minister. In between all this, the Assistant USTR had visited India to see the progress or to engage with the negotiating team who is dealing with the tariff-related negotiation and the bilateral trade agreement that we want to sign,” she said.

These discussions are taking place against the backdrop of now-paused US tariffs of 26% that President Donald Trump announced earlier this month. However, the US has paused the tariffs implementation for 90 days to allow time for talks.

Sitharaman also talked about India’s growing role in the global economy, and said the country is making developments in sectors such as semiconductors, renewable energy, digital infrastructure, and artificial intelligence. She said global institutions view India as a potential “engine driving global trade.”

At present, India-US bilateral trade are reported to be at $191 billion. The two countries have set a goal to increase this figure to $500 billion by 2030. Last year, India posted a trade surplus of $45.7 billion with the US.

Sitharaman is on a five-day visit to the US through 25 April, participating in the Spring Meetings of the International Monetary Fund and the World Bank, as well as the G20 finance ministers and central bank governors meeting.

She is also holding bilateral meetings with finance leaders from the US, the UK, Germany, France, Luxembourg, and Saudi Arabia.

During the same period, US vice-president JD Vance began a four-day trip to India. He has met with Prime Minister Narendra Modi as both countries aim to enhance bilateral co-operation.