As 2025 ends, India looks to clinch key trade deals

India’s trade negotiations with both the European Union and the US are seen to be reaching the final stages with expectations that both the deals could see closure soon.

India and the US will hold negotiations on Wednesday and Thursday for a bilateral trade deal amidst hopes that these could help finalise the agreement.

Trade talks between India and the US are seen to be at a crucial juncture with both countries having indicated in the recent past that the deal is in the final stages and could be closed at any time. US Deputy Ambassador for Trade, Rick Switzer, arrived in New Delhi on December 9 and will hold talks with India’s commerce ministry. However, talks are seen to be overshadowed by US President Donald Trump’s recent threat to impose new tariffs on Indian rice exports.

The US has already imposed 50% tariffs on India exports to the country and has been keen to clinch a bilateral trade agreement. On its part, India has increased crude oil purchases from the US and has been hopeful that the first tranche of the trade agreement will review the 25% additional penalty tariffs imposed for the purchase of Russian oil, along with the 25% reciprocal tariffs.

Expectations are that the US could lower tariffs on India to about 17-18% but official sources have remained tight-lipped on the modalities of the deal.

Meanwhile, till a day before, the commerce ministry was also holding parleys for the free trade agreement with the European Union. Commerce and Industry Piyush Goyal, held discussions with H.E Maroš Šefčovič, EU’s Commissioner for Trade and Economic Security during December 8 and 9. The discussions were preceded by high-level discussions between Commerce Secretary Rajesh Agarwal and Director-General Trade, European Commission in New Delhi on December 7.

“Talks seek to expedite conclusion of India-EU FTA and deepen trade relationship,” an official release had said. Leaders from both sides had previously agreed to a deadline of end 2025 to conclude talks for the free trade agreement.