India, US finalise terms of reference for first phase of trade deal, official says

New Delhi: India and the US have finalised terms of reference for talks over the first part of a bilateral trade deal, an Indian trade official said on Friday, adding it was possible that a "win-win" deal could take shape in the next 90 days.

US President Donald Trump on Wednesday announced a 90-day pause on most tariff hikes for major trading partners including India, while raising levies on China, providing temporary relief for Indian exporters.

India and the US agreed in February to work on the first phase of a trade deal to be concluded late this year, with a view to reaching bilateral trade worth $500 billion by 2030.

"We are far ahead in trade talks with the US compared to other countries ... there are lots of possibilities in 90 days," said the official, who did not want to be named because of the sensitivity of the issue.

Reuters reported on Thursday that India wanted to move quickly to clinch a trade deal following Trump's tariff pause.

Trade discussions between the countries will continue virtually and regularly, the official said, adding there could be some delegation-level visits from both sides as part of the talks.

US Vice President JD Vance is also expected to visit India soon, the official said.

Trump's administration had announced a 26% tariff on Indian goods earlier this month, and New Delhi had said it did not plan to retaliate.

Bilateral trade with the US, India's largest trading partner, rose to around $129 billion in 2024, with a $45.7 billion surplus in favour of India.

India has asked its customs authorities to step up scrutiny of exports and imports of goods to ensure the country is not used as a conduit to re-route goods to the US, the official said.

Trade analysts have said that, following Trump's huge increase in tariffs on China, some companies could use India to divert exports to the US market.

"Neither will India be the source of trade diversion for our products, nor will it become a safe haven for others to divert through India," the official said.

"India wants to remain a trusted trading partner. This is the message of Prime Minister Narendra Modi to all government officials and industry."