On Thursday, Jamieson Greer, the United States Trade Representative (USTR), announced that negotiations regarding a trade agreement between India and the United States are nearing completion. However, he indicated that the finalization of this deal is not expected to occur in the immediate future, as both nations have identified several contentious issues that remain unresolved. Greer’s remarks followed his meeting with India’s Commerce and Industry Minister, Piyush Goyal, at the recent G20 Trade Ministers’ Meeting, with ongoing discussions between the two countries’ negotiators taking place in Washington.
Greer emphasized the importance of his comments, particularly in light of the anticipated release of the results from the second Section 301 trade investigation, which examines the issue of “overcapacity.” The U.S. has already implemented a 10% tariff on Indian imports due to concerns regarding the use of forced labor in the production of certain goods.
“Minister Goyal and I had a very productive discussion; our teams are currently meeting since they are present here,” Greer stated during a press conference. “We are actively working towards concluding the trade agreement with India. I would describe it as being in the final stages. I believe we are approaching the conclusion. The President and Prime Minister Modi had a constructive phone call yesterday morning, U.S. time,” he added.
While acknowledging progress, Greer noted, “I don’t think a deal is imminent, but we have identified the key issues that need to be addressed. We are diligently working towards resolution. I expect that the President and Prime Minister may have another call shortly to evaluate our progress.”
The U.S. has gained additional leverage over India following President Donald Trump’s recent enactment of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which grants him the authority to impose tariffs of up to 100% on nations, including India and China, that continue to purchase Russian oil and gas.
In response, India’s Ministry of External Affairs (MEA) reiterated its commitment to safeguarding the country’s energy security through diversified sourcing strategies that reflect changing market conditions. They noted that the potential impacts of the proposed legislation on India-U.S. relations and the global energy landscape have been discussed with U.S. officials.
As negotiations progress, Indian firms are increasing their investments in the U.S. For example, Mesabi Metallics, part of the Essar Group, recently announced an ambitious $18 billion investment to establish a fully integrated steel production facility in the United States. President Trump praised this as the “largest single location investment in an integrated steel complex” within the country.
Despite these developments, the U.S. has raised numerous concerns regarding India and other nations over recent months. A new report from the U.S. Department of State, released this week, highlighted that while India is open to foreign direct investment (FDI), American investors face challenges due to a balancing act between openness and “economic nationalism,” as well as corruption risks within the regulatory framework, which hinder FDI inflows.
The report pointed out that although India allows 100% FDI in most sectors without prior approval, foreign investors, including wholly owned subsidiaries in India, must seek government approval for investments in multi-brand retail, private banking, pharmaceuticals, defense, print and digital media, and satellite services. It also noted that U.S. businesses report actual and potential corruption—particularly in regulatory systems—as obstacles to investing in India. As of 2024, U.S. direct investment stock in India reached $58.54 billion, reflecting a 3.37% decrease from the previous year.
Additionally, a White House report titled ‘The Great Transhipment Scam: Global Evasion and Economic Costs’ released in August indicated that over 40 countries, including India, are part of a ‘shadow transhipment network’ aimed at concealing the genuine economic origin of goods manufactured in China. The report classified this network into three tiers, with India, along with Mexico and Canada, in tier 1, where the risk of illegal transhipment is embedded within substantial legitimate trade. Countries such as Vietnam, Malaysia, and Thailand, which are closely linked with China, were placed in tier 2, while smaller economies with weaker customs enforcement, like Cambodia, Panama, and the UAE, were categorized as tier 3.
Ravi Dutta Mishra serves as a Principal Correspondent for The Indian Express, focusing on economic policy and financial regulations. With over five years of experience in business journalism, he provides insightful analysis of the frameworks that shape India’s commercial environment.
Mishra’s expertise encompasses:
- Trade & Commerce: Examining India’s import-export dynamics, trade agreements, and commercial policies.
- Banking & Finance: Reporting on regulatory changes and policy developments impacting the banking sector.
Before joining The Indian Express, Mishra developed a strong portfolio at leading financial news organizations, including Mint and CNBC-TV18. This diverse experience across print and broadcast media has provided him with a comprehensive understanding of financial reporting and news cycles.
For more stories by Ravi Dutta Mishra, visit his profile.
