As a high-level Indian delegation landed in Washington to resume stalled negotiations on a bilateral trade pact, US President Donald Trump on Thursday hinted at a “very big deal” with India, raising hopes of a breakthrough before the looming July 9 deadline.
“We are having some great deals. We have one coming up, maybe with India — a very big one — where we are going to open up India,” Trump said at a White House event promoting Republican tax and spending reforms. He added that the US was also “starting to open up China,” though he did not provide specific details about any agreement with Beijing.
Trump’s remarks came just as India’s chief trade negotiator, Rajesh Agarwal, arrived in Washington for talks aimed at finalising a deal before reciprocal tariffs come into effect. The US had earlier suspended a 26% tariff on certain Indian goods until July 9, and both sides are working against the clock to prevent trade tensions from escalating.
Talks Expected to Focus on Tariffs, Digital Trade, and Agriculture
While optimism has grown on both sides, trade experts caution that the outcome may be more modest than Trump’s tone suggests. The Global Trade Research Initiative (GTRI), a Delhi-based think tank, said on Friday that the final outcome could resemble the limited trade agreement signed between the US and the UK in May.
GTRI founder Ajay Srivastava warned against politically driven decisions. “A trade deal with the US must not be politically driven. It must protect Indian farmers, our digital ecosystem, and our sovereign regulatory space,” he said.
The Indian delegation is expected to focus on securing market access for its pharmaceutical, agriculture, and engineering sectors, while pushing back against US demands related to digital trade rules and agriculture subsidies.
With time running out and political pressure mounting, both countries appear eager to strike a deal — but it remains to be seen whether the outcome will match the scale Trump hinted at or be limited in scope.
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