India-US Trade Deal May Take 3-4 More Months. What's Causing The Delay?

US-India Trade Deal: The trade deal between the United States and India could still take another three to four months to be signed, despite negotiations being almost complete, according to a senior US official quoted by Reuters.

Speaking on condition of anonymity on the sidelines of the ASEAN Foreign Ministers’ meeting in Manila on Wednesday, the official said the agreement itself was ready, with the remaining delay linked to Washington’s ongoing trade investigations rather than differences between the two countries.

“The deal… is there. We literally have the paper,” the official said, according to a Reuters report.

Section 301 remain the main hurdle

The official said the outstanding issue was the completion of the United States’ Section 301 trade investigations. Section 301 covers

unfair trade practices and allows the US government to impose tariffs or take other retaliatory measures.

According to the official, one Section 301 investigation covering 60 countries is expected to conclude this week or next. Once that and other ongoing investigations are completed, progress is expected not only on the India agreement but also on trade discussions with other countries.

“We’ll start seeing progress, not just in India but in other places,” the official said.

When asked about the likely timeline for the agreement, the official replied, “Maybe another three, four months.”

Trade talks close to completion

Washington and New Delhi have been negotiating a bilateral trade agreement aimed at expanding market access and reducing trade barriers as part of broader efforts to strengthen economic ties.

The US official said the agreement was nearly complete and stressed that the remaining delay was due to the ongoing US trade investigations, not unresolved bilateral issues between the two sides.

The comments suggest that negotiations on the substance of the agreement have largely been concluded, with procedural matters in Washington now determining the timeline.

Tariff moves could affect India’s exports

The latest update comes as Washington has proposed new tariffs of up to 12.5% on dozens of countries, including India, over allegations that they failed to curb trade in goods made using forced labour.

Separately, US President Donald Trump announced on Tuesday that generic drugs imported into the United States would remain exempt from tariffs for two years from August 1. After that period, they would face tariffs of 100% for one year and 200% thereafter.

The move could have significant implications for India’s pharmaceutical sector.

India is the most exposed among exporters of generic medicines to the United States. In 2025, the US accounted for $9.7 billion of India’s pharmaceutical exports, representing nearly 38% of the country’s total pharmaceutical exports of $25.8 billion.