A long-awaited trade agreement between India and the United States is on the verge of finalisation, with a senior US official stating on Friday, 16 October 2026 that only one or two per cent of negotiations remain unresolved. The remarks, made at a State Department briefing in Washington, signal that months of high-level diplomatic engagement between the world's largest democracies are nearing a conclusive outcome.

What the US Official Said

'The biggest items have been settled. I mean …., it's pretty much done. We have that one, one or two per cent left,' the official told reporters during the briefing. The official confirmed that both governments remain in constant contact, noting: 'We are actively engaged every single week.'

The official cited recent high-level diplomatic touchpoints as evidence of strong momentum — including engagements involving US Trade Representative Jamieson Greer, India's Commerce Minister Piyush Goyal, and direct conversations between President Donald Trump and Prime Minister Narendra Modi.

The IEEPA Complication That Delayed the Deal

Despite the optimism, the official acknowledged a significant legal setback that had added months to the timeline. An earlier framework for the agreement had been tied to the International Emergency Economic Powers Act (IEEPA), but that legal underpinning had to be reconsidered after the law was struck down. Negotiators were forced to revisit key elements of the proposed deal, contributing to the extended talks. The official expressed confidence, however, that the remaining differences could be bridged in the near term.

Rubio's India Visit: Mumbai and Jamnagar Over New Delhi

Secretary of State Marco Rubio is scheduled to visit India imminently, stopping first in Uzbekistan for meetings with Central Asian leaders before proceeding to Mumbai and Jamnagar. In Mumbai, Rubio is set to hold discussions with Indian government counterparts and senior executives from some of the country's largest companies.

Notably, the decision to hold meetings in Mumbai rather than New Delhi was described as a deliberate signal of the administration's growing emphasis on commercial diplomacy and Indian investment in the United States — a departure from the traditional diplomatic circuit that typically centres on the capital.

Sectors in Focus and What Comes Next

Washington is seeking closer bilateral engagement across information technology, pharmaceuticals, defence cooperation, and several other sectors, according to the official. Further visits by senior American Cabinet officials are also anticipated next year as both governments look to deepen bilateral ties.

This comes amid a broader recalibration of India-US relations under the Trump administration, with trade long identified as a friction point — particularly around tariffs, market access, and India's data localisation norms. Resolving the final sliver of disagreement could unlock substantial economic benefits for both sides and set the tone for the next phase of bilateral engagement.