Most reports suggest that the massive win for Democrats, who have stormed back to grab a majority in Congress, may have paved the way for an early signing of the trade deal.

Ajay Srivastava, Founder, Global Trade Research Initiative (GTRI), pointed out in a report that US President Donald Trump may want to expedite the trade deal with India.

However, sources told The Secretariat that India could opt to pursue diplomatic manoeuvring and delay the signing of the trade pact until the Trump tenure is over.

“We are in no hurry to sign the pact, we will weigh all pros and cons, and it is in our best interest to wait a bit to figure out the tariffs set for other countries,” a senior government official said.

Ties between India and the US have soured in the last few months. Last year, Washington slapped a 25% tariff on Indian goods. Later, another 25% was added as a penalty for importing Russian oil. In February, this year, however, the US reduced it to 18%.

The official added that there could be severe repercussions at a later stage if India signed a trade deal with the US at a time when Trump's position is getting tougher.

“India should not hurry… the tariff currently levied has been factored in, and if you factor in the depreciation of the rupee, there is clearly no cause for any concern — it effectively leads to minimum tariff, so it will be prudent to wait and watch and understand the quantum that is being set for other competing economies,” Pramit Pal Chaudhuri, Head of India Practice, Eurasia Group told The Secretariat.

A joint statement issued in February also underlined that India would purchase US$ 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years as part of the trade pact.

Goyal On India-US BTA

Just last month, Commerce and Industry Minister Piyush Goyal said that most of the framework of the trade pact has been sealed.

What is noteworthy is this: concluding the last leg of negotiations is the most time-consuming and arduous exercise.

Speaking at an event in the national capital, the minister also said that the trade pact will benefit India. "I have the courage of conviction to announce boldly that the US trade deal, once details are out, the people of India will celebrate that not a single sensitive interest of our farmers or any stakeholder has been compromised," he said.

India-US bilateral trade stood at US$ 140.79 billion in 2025-26, with the trade balance of US$ 33.82 billion in India's favour. Also, the US is India's topmost export destination and the fourth largest import partner.