India-US Trade Deal To Be Finalised By March Next Year: CEA

New Delhi: Hinting that India and the US are very close to finalizing the long-pending trade deal, chief economic advisor (CEA) V Anantha Nageswaran on Thursday said most of the major issues have already been resolved. “Talks are now in their final stages and an agreement is likely to be reached by March next year,” he said while speaking to a television channel, adding that India’s growth prospects for FY2027 remain strong and stating that the rupee is undervalued based on fundamental data.

Amid renewed optimism on both sides, US officials also publicly acknowledged that they had received the most forward-looking trade offers from India to date. However, CEA’s comments come at a time when global business conditions are uncertain and both countries are aiming for a stable, balanced and growth-oriented agreement.

“I was hoping to get something done by the end of November this year, but it has proven difficult. So it is difficult to give a timeline on this. I think a deal is likely by March 2026. But I would be surprised if we don’t sign it by the end of the financial year,” Nageswaran said in an interview.

Initially, New Delhi and Washington agreed to complete the first tranche of the trade deal by autumn this year. However, the two countries failed to reach an agreement before the deadline. Over the last few weeks, India has expressed confidence that the deal could be completed by the end of the year.

However, when asked about the delay in the India-US agreement, Nageswaran blamed geopolitics for the delay and said it was difficult to set a timeline for the agreement. “I believe this is as much a geopolitical issue as bilateral trade,” the CEA said, adding that it was very difficult to put a timeline on this at the moment.

On the country’s economy and rupee movement, Nageswaran also said that the country’s economy is in “fairly good shape”, with exporters managing to resist the tariff impacts and partially compensating for the negative effects by diversifying into other markets. “The economy surprised us with a better-than-expected performance early in the forecast cycle. The FY27 economic outlook has positive momentum and I would not be surprised if something like this happens for 2026-27 as well,” he said.

He also stated that the weakening of the rupee at this point amid global uncertainties is beneficial for the export sector. “The rupee has depreciated by 5-15 per cent against India’s trade rivals. The weaker rupee at this point is not a big problem as it benefits the export sector given global uncertainties,” he said.