By Harshit
NEW DELHI, JANUARY 28, 2026 —
A long-anticipated trade agreement between India and the United States is at a “very advanced stage,” according to India’s petroleum and natural gas minister, signaling potential momentum in negotiations that have been slowed by tariff disputes and geopolitical tensions.
Speaking to CNBC on Tuesday, Hardeep Singh Puri said negotiators on both sides believe the deal could be finalized sooner rather than later, even as India announced a separate landmark trade agreement with the European Union.
“I’m told by the people who are in the negotiations that it’s at a very advanced stage, and I’m hoping that, sooner rather than later, it will also see the light of day,” Puri said in an interview with CNBC’s Amitoj Singh.
India Signals Confidence in Multilateral Trade
Puri described the relationship between India and the United States as “very strong,” emphasizing New Delhi’s commitment to a multilateral trading system. That stance, he said, was underscored by the newly announced free trade agreement between India and the European Union, which will gradually eliminate tariffs on the majority of goods traded between the two sides.
India’s openness to trade, Puri added, should ultimately benefit Washington as negotiations with the U.S. continue.
“There’s an economic opportunity here for others who want trade deals,” he said. “I think it’s going to be a mutual benefit—not only for the EU, but the United States and elsewhere also.”
Tariffs Remain a Major Point of Tension
Despite progress in negotiations, the United States continues to impose punitive tariffs on both India and the EU.
Under current U.S. trade policy:
- EU exports to the U.S. face a 15% tariff
- Indian exports are subject to tariffs of up to 50%, a significantly higher rate
The steeper tariffs on India are tied in part to New Delhi’s continued purchases of Russian oil, a point of contention for Washington amid ongoing geopolitical tensions.
While the U.S. is engaged in trade talks with both partners, these tariffs remain in place, creating uncertainty for exporters and global supply chains.
Washington Reacts Coolly to EU–India Deal
President Donald Trump has not yet publicly responded to the EU–India agreement, which was announced early Tuesday morning European time.
However, Scott Bessent criticized the European Union for moving ahead with the deal, arguing that the U.S. has taken a tougher stance toward India over its energy ties with Russia.
“The U.S. has made much bigger sacrifices than Europeans have,” Bessent said in comments aired on ABC News on Sunday. “We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India.”
His remarks highlight growing friction between Washington and Brussels over trade strategy, even as both seek to manage economic relations with India—one of the world’s fastest-growing major economies.
What It Means for U.S. Businesses
For U.S. companies, a finalized India–U.S. trade deal could unlock significant opportunities in sectors such as:
- Energy and petrochemicals
- Manufacturing and industrial goods
- Technology and digital services
- Agriculture and consumer products
India’s expanding middle class and its role as a manufacturing alternative to China make improved market access strategically valuable for American exporters.
However, until tariffs are reduced or removed, businesses face elevated costs and uncertainty when operating across the U.S.–India corridor.