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The India-US trade agreement is now almost complete, with both countries working to resolve the last few outstanding issues.
Breaking it down: US Ambassador Sergio Gor said an Indian delegation was in Washington last week to iron out pending points, while an American team is expected to visit New Delhi soon to wrap up negotiations.
According to Gor, the deal could be signed over the next few weeks or months. The groundwork was laid earlier this year when both countries agreed to pursue a reciprocal trade framework aimed at expanding economic cooperation.
One interesting development is a new partnership around critical minerals, essential materials used in electric vehicles, batteries, semiconductors, and defence equipment. As China tightens control over rare earth exports, both India and the US are looking to build more secure and diversified supply chains.
Why it matters: trade between India and the US has grown from around $20 billion two decades ago to more than $220 billion today. The US is now one of India's largest trading partners, while India has become an increasingly important economic partner for the US.
Gor also highlighted that nearly 40% of generic medicines used in the US come from India, underlining how deeply connected the two economies have become.
Zoom out: the trade deal comes amid a broader strengthening of India-US ties spanning technology, defence, supply chains, and manufacturing.
With both countries looking to reduce dependence on China in strategic sectors, economic cooperation is increasingly becoming the backbone of the relationship.
