India-US trade deal likely by March 2026, FY27 outlook strong: CEA

Chief Economic Advisor V Anantha Nageswaran's comments come amid a series of exchanges between the two sides to reduce trade barriers

Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said that India and the US have ironed out "most of their pending differences" on trade, and that a formal agreement could be in place by March 2026.

 

Speaking to Bloomberg TV, Nageswaran also said that India’s growth prospects for FY27 remain strong and described the rupee as “undervalued relative to fundamentals”.

 

His comments come amid a series of exchanges between the two sides to reduce trade barriers, with US officials recently signalling that they have received some of the most forward-leaning trade proposals from India so far.

 

The development comes a day after Commerce Minister Piyush Goyal said that the talks with the US on the proposed bilateral trade agreement are progressing, adding that a delegation from the US is in New Delhi for the negotiations.

 

 

"The talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement," Goyal told reporters.

 

The US delegation's visit is crucial as New Delhi and Washington work to conclude the first tranche of the agreement. This marks the second trip by US officials since Washington imposed a 25 per cent tariff, along with an additional 25 per cent penalty, on Indian exports over New Delhi’s continued purchases of Russian crude oil. Their previous visit to India took place on September 16.

 

According to news agency PTI, US Trade Representative (USTR) Jamieson Greer, on Tuesday, informed a Senate Appropriations Subcommittee hearing in Washington that India presented some of the most forward-leaning proposals so far on the proposed bilateral trade agreement.

 

He added that the US has received "best" ever offers from India, despite the disagreements persisting over access to American row crops and meat products, such as corn, soybeans, cotton, and wheat. "They have been very difficult nut to crack...but they have been quite forward leaning....the type of offers that they have been talking to us about ...have been the best, we have ever received as a country, so I think that is a viable alternative market," Greer said.

 

India-US trade talks

 

The US imposed 50 per cent tariffs on India, the highest on any of the countries in the world, of which 25 per cent was imposed for India's purchase of Russian crude oil, a decision that New Delhi says was taken keeping in mind the national energy security needs. However, the US has consistently accused India of funding Russian President Vladimir Putin's war in Ukraine.

 

Earlier this week, Trump, while unveiling the $12 billion support package for American farmers, indicated that Washington may impose new tariffs on Indian rice exports, citing challenges for domestic producers.