It is reported that progress has been made in the US-India trade negotiations, and a preliminary agreement is expected to be signed before month-end.

According to media reports citing Indian government sources, negotiators from India and the US made progress in the latest round of talks on a bilateral trade agreement held in New Delhi on Tuesday, focusing on issues such as market access for industrial products and some agricultural products, as well as reducing tariff and non-tariff barriers.

One of the sources said, "The negotiations with the US side have been fruitful and have helped move closer to reaching a mutually beneficial and balanced agreement."

The US delegation, led by senior officials from the Office of the US Trade Representative, held closed-door negotiations with Indian trade ministry officials led by Rajesh Agrawal, India's chief trade negotiator.

The sources said that the two sides discussed increasing bilateral digital trade by improving customs and trade facilitation measures, adding that "negotiations will continue" to reach an initial phase trade agreement at an early date.

The reports also said that the two sides are expected to sign a preliminary agreement before month-end, when the exemption period for the "reciprocal tariff" granted by US President Trump to major trading partners will expire.

Indian Commerce Minister Piyush Goyal said that India is prepared to resolve some simple issues first to advance the agreement.

Indian officials added that the next phase of negotiations may address more complex issues, with the goal of signing the first batch of bilateral trade agreements by September or October.

The sources also said that India has rejected the US request to open its import markets for wheat, dairy products, and corn, while committing to reducing tariffs on high-value US products such as almonds, pistachios, and walnuts.

The reports said that India has also asked the US to eliminate its 10% benchmark tariff. However, the US side has opposed this, noting that even the UK, which recently reached a trade agreement with the US, must pay this tariff.

In addition, India has sought an exemption from the US for a 50% tariff on its steel exports.

In April this year, Trump announced a 26% reciprocal tariff on Indian goods, but subsequently granted a 90-day exemption period, during which only the 10% benchmark tariff was imposed.

If India and the US reach a trade agreement and reduce tariffs, trade volume between the two countries is expected to increase significantly. Indian Prime Minister Narendra Modi and US President Trump have both set an ambitious goal of achieving bilateral trade worth $500 billion by 2030.

The US is India's largest trading partner. Data from the Office of the US Trade Representative (USTR) shows that the total bilateral trade volume in 2024 was approximately $129 billion, with total US merchandise exports to India at $41.8 billion, import value at $87.4 billion, and a trade deficit of $45.7 billion.