India-AU Trade Pact Update

NEW DELHI (Reuters) – India hopes to “positively conclude” the first part of a trade pact with the United States by autumn, according to Finance Minister Nirmala Sitharaman.

Sitharaman, addressing the Indian diaspora in San Francisco, emphasized that the goal of engaging with the U.S. extends beyond reciprocal tariffs, highlighting the importance of maintaining a strong relationship with their largest trading partner.

She is currently on a five-day trip to the U.S. that includes participation in the spring meetings of the International Monetary Fund (IMF) and the World Bank, as well as the G20 finance ministers and central bank governors meeting, as stated by an Indian government official.

Additionally, Sitharaman is scheduled to meet U.S. Treasury Secretary Scott Bessent and officials at the U.S. Trade Representative’s office, focusing on trade negotiations aimed at avoiding steep tariffs and strengthening ties under the Trump administration.

Indian officials are working to finalize an agreement during the 90-day pause on tariff increases announced by Trump on April 9, impacting major trading partners including India.

Rajesh Agrawal, India’s chief negotiator, is anticipated to visit the U.S. for three days starting Wednesday.

Meanwhile, U.S. Vice President JD Vance began a four-day visit to India, where he is set to meet Prime Minister Narendra Modi. They will review progress on the bilateral agenda established in February, during Modi’s meeting with Trump.

India is willing to reduce tariffs on over half of its imports from the U.S., amounting to $41.8 billion in 2024, as part of the trade deal. The U.S. is India’s largest trading partner, with bilateral trade reaching $129 billion in 2024, including a $45.7 billion surplus for India, per U.S. trade data.