US-India Trade Agreement Expected Soon Amid Ongoing Investigations

A senior US official has announced that the US-India trade agreement may be finalized within three to four months, with negotiations nearly complete. The remaining delays are attributed to ongoing US trade investigations rather than unresolved bilateral issues. Meanwhile, President Trump's new tariff plan on imported generic drugs has raised concerns among Indian pharmaceutical companies. This article explores the implications of these developments on the trade relationship between the two nations.

By Narendra Chaudhary Jul 22, 2026, 18:47 IST

Progress on US-India Trade Deal

A senior official from the United States has indicated that a trade agreement with India could be finalized within the next three to four months. The discussions between the two nations are reportedly nearing completion. The official, who spoke anonymously during the ASEAN Foreign Ministers' meeting in Manila, mentioned, "the deal... is there. We literally have the paper." They clarified that the remaining delays are primarily due to ongoing US trade investigations rather than any unresolved issues between the two countries.

The official noted that a Section 301 investigation involving 60 countries is anticipated to conclude soon, possibly this week or next. Following the resolution of this and other investigations, they expect to see advancements not only with India but also in other regions.

When questioned about the timeline for finalizing the agreement, the official suggested it could take another three to four months. Last month, US Ambassador to India, Sergio Gor, had expressed optimism, stating that the trade deal is in its final stages, with most aspects completed and only a few items pending on both sides.

Ambassador Gor emphasized the strong personal rapport between US President Donald Trump and Indian Prime Minister Narendra Modi as a driving force behind the bilateral relationship. However, this announcement coincided with President Trump's declaration of a phased tariff plan on imported generic drugs, aimed at bolstering domestic pharmaceutical production in the US.

As a result of this tariff plan, shares of Indian pharmaceutical companies like Sun Pharma, Cipla, and Dr. Reddy's faced declines on the Nifty 50 index, raising concerns about the long-term implications for Indian drug manufacturers heavily reliant on the US market. The proposed tariff structure includes a 0% tariff on generic drugs imported into the US for the first two years starting August 1, followed by a 100% tariff for one year beginning August 2028, and a subsequent 200% tariff thereafter.