A trade agreement between India and the United States may be on the horizon, with U.S. Commerce Secretary Howard Lutnick expressing optimism about its prospects.
Speaking at the eighth annual U.S.-India Strategic Partnership Forum (USISPF) Leadership Summit in Washington on Monday, Lutnick said he expects a deal in the “not-too-distant future,” as both sides continue to make progress in bilateral negotiations.
Lutnick praised the role of skilled negotiators on both sides, saying, “When the right person sits across the table, we’ve managed to be in a very good place. You should expect a deal between the United States and India in the not-too-distant future because we’ve found a place that really works for both countries.”
He described the current outlook for a trade pact as “very optimistic” and said it was important to move quickly.
“If you put in a normal trade minister, it’s an endless set of talks with no outcome. These things normally take years. We’re trying to do it in a month,” he said.
Lutnick also highlighted the unique political mandates of former U.S. President Donald Trump and Indian Prime Minister Narendra Modi, describing their relationship as a foundation for smoother negotiations.
“If you think about the world, how many other leaders are elected by their country? That connection is pretty unique,” he said.
However, Lutnick acknowledged that some issues have created friction between the two countries. India’s longstanding military ties with Russia were one such concern.
“Buying your armaments from Russia tends to get under the skin of America,” he said, noting that India appears to be shifting towards U.S.-made military equipment, which he welcomed.
India’s involvement in multilateral forums such as BRICS was also flagged as an area of divergence in the bilateral relationship.
On trade specifics, Lutnick criticised India’s high tariffs and said Trump would not hesitate to call them out. “India is very protectionist with tariffs. They have 100 per cent tariffs on some goods, and if you ask why, the answer is often unclear,” he said.
He urged a reassessment of these duties to enable more equitable trade between the two countries. “We want to be great trading partners, and that means making it easier and more reasonable to do business,” he said.
Lutnick also said India is working to be one of the “earlier countries” to finalise a deal with the U.S., recognising that early negotiators tend to receive more favourable terms.
He added that while comprehensive agreements traditionally take years, both sides were making an extraordinary effort to speed up the process.
In terms of expectations, Lutnick said the U.S. is seeking greater access to Indian markets and a reduction in the trade deficit. “We’d like market access. It’s not going to be everything, and not going to be everywhere, but we want to reduce the deficit,” he said.
India, he added, would expect similar concessions. “India will want access to specific parts of the U.S. market, and that’s the trade-off. If I say, ‘I’ll treat you kindly on the things that matter to you, and you reduce tariffs and give us access’, then we’ll find a proper middle ground,” he said.
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