India and the United States are “very close” to finalizing a bilateral trade agreement, Commerce Secretary Rajesh Agrawal said on Thursday, signaling progress in negotiations aimed at strengthening economic ties between the two countries. However, he stopped short of providing a specific timeline for when the deal would be formally announced.

Speaking amid concerns over trade disruptions, the commerce secretary said discussions with the US, as well as with the European Union, were advancing steadily. His remarks come at a time when Indian exporters have expressed apprehension over the impact of steep tariffs imposed by US President Donald Trump on certain Indian goods entering the American market.

Agrawal acknowledged that higher tariffs had created uncertainty, particularly for export-oriented sectors, but stressed that India was actively engaging with its trade partners to address these challenges. He indicated that the proposed bilateral trade agreement (BTA) with the US is intended to provide greater predictability, market access, and long-term stability for businesses on both sides.

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While details of the proposed agreement were not disclosed, officials have previously stated that the negotiations cover a wide range of issues, including tariffs, market access, supply chains, and regulatory cooperation. The deal is being viewed as a key step in safeguarding India’s export interests while also deepening strategic and economic cooperation with Washington.

In addition to talks with the US, India is also working towards concluding a comprehensive trade agreement with the European Union. According to the commerce secretary, parallel negotiations with the EU underline India’s broader strategy to diversify trade partnerships and reduce vulnerability to unilateral trade measures.

As global trade dynamics continue to evolve, policymakers and industry stakeholders will be closely watching the outcome of these negotiations. A successful trade deal with the US could help ease tariff-related concerns, boost investor confidence, and reinforce India’s position in the global trading system.

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