India-US trade talks going in right direction, Jaishankar says, as both sides work to finalize deal

India’s trade talks with the United States are moving in the right direction, External Affairs Minister S Jaishankar said on Tuesday (October 13), signaling continued efforts to finalize a deal despite differences in tariffs and market access.

India-US trade talks are moving in the right direction, says Jaishankar

Jaishankar’s remarks offer a positive signal from New Delhi as the two countries attempt to seal a trade pact that has taken longer than originally thought. However, the deal is still in the works and his comments do not mean a final deal has been signed.

The minister’s assessment comes amid uncertainty over Washington’s changing tariff policies and their implications for Indian exporters. The talks have become an important part of the broader India-US relationship, with both sides seeking to strengthen trade ties while protecting their domestic economic interests.

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According to financial intelligence service Newsquawk, Jaishankar said that talks are moving in the right direction and that a deal is being concluded.

Why did the trade deal take longer?

India and the US announced the framework for the first phase of their bilateral trade agreement in February 2026. However, subsequent changes in US tariff policy have complicated the process and sparked further discussions.

In September, Jaishankar acknowledged that negotiations had been more difficult than expected, pointing to differences between the two economies and the need to protect sensitive domestic sectors.

India has a large base of small producers, agricultural producers and businesses whose interests could be affected by changes in import duties and market access.

New Delhi therefore sought to ensure that any deal offered a competitive playing field to Indian exporters without putting undue pressure on vulnerable sectors.

Speaking at an Asia Society event in New York, Jaishankar said the two sides had reached a stage where there was “more or less an understanding on the trade deal”. He also noted that the remaining questions require careful consideration.

Uncertainty over US tariffs remains a sticking point

One key complication is the evolving U.S. customs framework, including the ongoing Section 301 process. The provision allows the United States to investigate foreign trade practices it deems unfair and, if necessary, impose additional tariffs.

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Jaishankar asked when India should conclude a deal while aspects of the US tariff regime remain unresolved. The uncertainty matters because Indian exporters need to be clear about what tariffs their products will face in the US market.

India is also seeking tariff conditions that will enable its businesses to compete effectively with exporters from other countries.

Reuters reported on October 6 that the talks had hit new hurdles, with officials describing limited progress toward an imminent deal.

The agreement could help stabilize bilateral relations

Trade has become a major source of friction between New Delhi and Washington, along with disagreements on other diplomatic and economic issues.

Jaishankar had earlier said that the conclusion of the agreement could help put bilateral relations on a better footing. A strong framework could give businesses more certainty about rates, market access and investment.

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For now, his latest remarks suggest that negotiations remain active, but important issues remain unresolved. The next step will be to translate said progress into an agreement acceptable to both governments.

Until the terms are formally concluded, Indian exporters and US businesses will have to contend with uncertainty about future trade arrangements between the two countries.