India and the United States have finalized the terms of reference for discussions on the initial phase of a bilateral trade agreement. Indian trade officials express optimism about achieving a mutually beneficial deal within the next 90 days.

This development follows U.S. President Donald Trump's recent announcement of a 90-day pause on most tariff hikes for major trading partners, including India, while increasing levies on China. Earlier this month, the U.S. had imposed a 26% tariff on Indian goods. India has indicated it does not plan to retaliate, focusing instead on advancing trade discussions.

The negotiations aim to expand bilateral trade to $500 billion by 2030, focusing on market access, reducing trade barriers, and integrating supply chains. Regular virtual engagements are planned to advance the talks, highlighting the importance both nations place on deepening trade ties. An unnamed Indian official emphasized that trade discussions with the U.S. are progressing faster than those with other countries, reflecting significant potential for near-term progress.

U.S. Vice President JD Vance is expected to visit India soon, underscoring the significance of the bilateral trade relationship. India has also instructed its customs authorities to enhance scrutiny of exports and imports to prevent the re-routing of goods to the U.S., ensuring compliance with trade regulations.

As both nations work towards finalizing the first phase of the trade agreement, the focus remains on fostering a robust economic partnership that benefits both economies and contributes to global trade stability.