The long-awaited India-US trade deal could be signed within the next three to four months, a senior US official said on Wednesday, with talks between the two countries now almost complete.Speaking on the sidelines of the ASEAN foreign ministers’ meeting in Manila, the official said the text of the agreement has been effectively finalized and the remaining delays are linked to the ongoing US trade investigation rather than unresolved issues between Washington and New Delhi.“The deal… is done. We actually have the papers,” the official told Reuters on condition of anonymity.Asked when the agreement might be finalized, the official said, “Probably the next three, four months.”
Section 301 probe remains the last hurdle
According to Reuters, the main hurdle to signing the agreement is completion of Washington’s ongoing Section 301 trade investigation, which investigates alleged unfair trade practices and gives the US government the authority to impose tariffs or other retaliatory measures.One of the Section 301 investigations, covering about 60 countries, is expected to conclude this week or next week, the official said.“Once that and other ongoing investigations are completed, we will start to see progress not only in India but elsewhere as well,” the official was quoted as saying by Reuters.The official stressed that the bilateral trade agreement is almost complete and the remaining delays are procedural rather than the result of differences between the two countries.India and the US are negotiating a bilateral trade agreement aimed at expanding market access, reducing trade barriers and deepening economic ties.
Tariffs and pharma exports remain major concerns
The comments come as trade tensions continue to escalate over separate US tariff measures.Washington has already proposed new tariffs of up to 12.5% on dozens of countries, including India, over allegations that they have failed to curb trade in goods produced using forced labour.This proposal is related to the ongoing Section 301 investigation and has not been finalized yet.Separately, US President Donald Trump announced on Tuesday that generic drugs imported into the United States will be free from tariffs for two years starting on August 1.After that period, such imports will face 100% tariffs for one year and 200% thereafter.The move could significantly impact India’s pharmaceutical sector as New Delhi is among the most at-risk generic drug exporters.The United States accounted for about $9.7 billion, or about 38%, of India’s total pharmaceutical exports of $25.8 billion in 2025.
The framework agreement is already ready
The latest timeline is broadly in line with statements made by Indian officials in recent weeks.Earlier this month, an Indian official was quoted by news agency PTI as saying that the framework agreement between the two countries is ready and awaiting signing “at the right time”, while negotiations on a comprehensive bilateral trade agreement (BTA) are progressing smoothly.The official had also said that both sides clearly understood the content of the framework agreement and the issues being negotiated under the broader BTA, and added that there were no major differences over the negotiations.The report also said India is seeking a tariff structure under the proposed agreement that would provide a comparative advantage over competing exporting countries while ensuring better market access for Indian businesses.