India and the United States are moving closer to a trade agreement, according to US Secretary of State Marco Rubio. After meeting External Affairs Minister S. Jaishankar in Mumbai on October 20, Rubio said the deal was “very close”, with only a few issues left to resolve.
The discussions covered trade, energy, investment and defence. However, the agreement has not yet been signed, and its final terms remain uncertain.
The proposed deal could be important for Indian exporters. In August 2025, the US imposed tariffs of up to 50% on many Indian goods. A framework agreement announced in February 2026 reportedly reduced the rate to 18%. India has also sought tariff treatment comparable to countries such as Vietnam.
If the agreement is finalised, the tariff terms could affect how Indian products compete in the US market. However, exporters should wait for the final agreement before assuming that duties will fall further or that orders and jobs will increase.
Energy was another key issue. India’s purchases of Russian oil had become a point of tension between the two countries. Rubio acknowledged that India had diversified its energy sources. He is also scheduled to visit Reliance Industries’ refinery in Jamnagar, Gujarat.
For Indian businesses, including exporters in West Bengal’s tea, seafood and leather sectors, the practical impact will depend on the final tariff list and implementation details. The next step is an official announcement from both governments.
