‘Most US-India trade issues resolved’: CEA Nageswaran expects deal by March 2026

India’s Chief Economic Advisor (CEA) V Anantha Nageswaran has said that most outstanding trade issues between New Delhi and Washington have been resolved, expressing confidence that a long-pending bilateral trade agreement could be sealed by March 2026. 

“I was hoping something would be done by the end of November, but it has turned out to be elusive,” Nageswaran told Bloomberg Television. “However, I would be surprised if we don’t have it sealed by the end of the financial year.” 

The remarks come amid a renewed push by both nations to finalise the first tranche of the trade pact, originally expected to be concluded by fall 2025. Geopolitical pressures, Nageswaran admitted, have played a major role in the delay. “I believe this is as much a matter of geopolitics as it is of bilateral trade… it is very difficult to put a timeline to it,” he said. 

Fresh US engagement  

A high-level delegation led by Deputy US Trade Representative Ambassador Rick Switzer is currently in New Delhi for talks with Indian negotiators headed by Joint Secretary Darpan Jain. The visit is seen as critical as both nations attempt to close gaps in the first package of the agreement. 

Switzer noted that India had shown “resistance” on certain agricultural products but added that New Delhi’s latest proposals mark an “unusual opening.” US officials suggested that India is increasingly becoming “a viable alternative market” for American commodities at a time of rising inventories and uncertain Chinese demand. 

This is the second senior-level US visit in recent weeks. US Under Secretary of State for Political Affairs Allison Hooker concluded a five-day India trip on December 11 to advance the bilateral “strategic partnership.” 

The push comes days after Russian President Vladimir Putin’s visit to India, underscoring the geopolitical backdrop influencing trade talks. Tensions have also simmered since the US imposed an additional 25% penalty tariff on Indian goods for purchasing Russian oil — on top of an existing 25% levy — prompting India to diversify energy imports. 

'Economy on solid track' 

Nageswaran said India’s economic fundamentals remain solid despite tariff-related headwinds. Exporters, he noted, have managed to offset some fallout by expanding into alternative markets. 

“The economy has surprised us with better performance than we anticipated early in the forecast cycle. I will not be surprised if something like this happens for 2026-27 as well,” he said. 

A weaker rupee, down 5-15% against trade competitors, has also provided a buffer for exporters. “Having a weaker rupee at this point is not a major problem, as it benefits the export sector given global uncertainties,” the CEA said.

With the FY27 outlook showing “positive momentum,” Nageswaran reiterated that he expects the trade agreement to gain clarity in the coming months.