The long-awaited India-US trade agreement could be signed within the next three to four months, with the remaining delay tied to Washington's ongoing trade investigations rather than unresolved bilateral issues, a senior US official reportedly said on Wednesday.
Speaking on the sidelines of the ASEAN Foreign Ministers' Meeting in Manila, the official told Reuters that negotiations between New Delhi and Washington were effectively complete.
"The deal... is there. We literally have the paper," the official said, speaking on condition of anonymity.
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Reuters citing the official said that the key hurdle is the completion of the US government's Section 301 trade investigations, a legal mechanism that examines unfair trade practices and can lead to tariffs or other retaliatory measures.
The official said one Section 301 probe covering around 60 countries is expected to conclude this week or next. Once those reviews are completed, progress on multiple trade agreements, including India, could accelerate.
"We'll start seeing progress, not just in India but in other places," the official said.
When asked about the timeline for finalising the pact, the official said: "Maybe another three, four months."
India and the United States have been negotiating a bilateral trade agreement aimed at improving market access and lowering trade barriers as both countries seek to deepen economic ties.
The comments come even as Washington has proposed tariffs of up to 12.5% on imports from dozens of countries, including India, over allegations that they failed to curb trade in goods produced using forced labour.
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Separately, US President Donald Trump said on Tuesday that imported generic medicines would remain exempt from tariffs for two years beginning August 1. Thereafter, they would face tariffs of 100% for one year and 200% subsequently, a move that could have significant implications for India's pharmaceutical exports.
India is the most exposed among generic drug exporters to the US market. The United States accounted for $9.7 billion, or nearly 38%, of India's total pharmaceutical exports of $25.8 billion in 2025.
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