India-US Trade Talks Advance Amidst Complex Global Environment, USISPF President States at WEF 2026

Davos, Switzerland – Discussions surrounding a potential trade agreement between India and the United States are progressing, with a deal anticipated within the next three months, according to Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum (USISPF). Speaking at the 56th Annual Meeting of the World Economic Forum (WEF) 2026 in Davos, Aghi acknowledged the 'complex global environment' influencing these negotiations.

The ongoing talks, which have been described as 'nearing finalisation,' are focusing on critical aspects such as reciprocal trade terms and the often-complex area of agriculture. Aghi's remarks come as global leaders convene at the WEF, held from January 19 to 23, 2026, under the theme 'A Spirit of Dialogue.'

Navigating a Complex Trade Landscape

Aghi highlighted that predicting future developments in the trade relationship remains challenging due to the volatile international order and global uncertainties. The backdrop includes the imposition of 25% tariffs on Indian goods by the US, effective August 1, 2025, and concerns over the 'weaponisation of tariffs' by the US administration. Despite these challenges, both nations are actively engaged in discussions to find a path forward.

The goal of these negotiations, which formally began in February 2025, is to establish a Bilateral Trade Agreement (BTA) aimed at more than doubling bilateral trade from its current levels to $500 billion by 2030. Key areas of contention include agricultural tariffs, particularly on pulse crops, where the US has noted India's average applied tariff rate on agricultural products to be significantly higher than its own.

Beyond Trade: A Multifaceted Partnership

The USISPF President underscored that the relationship between India and the United States extends far beyond mere trade. He emphasized the importance of people-to-people ties, technology cooperation, and investment as integral components of the bilateral partnership. Aghi pointed out the substantial contribution of Indian-Americans to the US economy, generating 6% of its GDP despite constituting only 1.5% of the population.

Furthermore, the USISPF has been actively advocating for stronger cooperation in strategic sectors, including critical minerals. The forum welcomed India's participation in discussions on securing critical mineral supply chains, recognizing India's growing role in global technology and manufacturing ecosystems. This collaboration aims to enhance supply-chain resilience and foster trusted technology partnerships.

Economic Resilience Amidst Global Shifts

The WEF 2026 also provided a platform for discussions on India's economic trajectory. World Economic Forum President Borge Brende noted India's economic reforms have unfolded 'much faster than expected,' positioning it as the fastest-growing large economy globally. This resilience is particularly significant given the broader geopolitical turbulence affecting global trade.

Despite concerns about tariff disputes and political rhetoric, Aghi confirmed strong investment momentum. He reported that none of the over 100 US and global CEOs he consulted planned to reduce investment in India or shift supply chains away. Significant capital pledges from US companies in areas such as AI, cloud computing, and data infrastructure serve as evidence of continued confidence in India's growth story.

As the India-US trade talks continue, the focus remains on navigating the complexities of the global economic landscape while strengthening a strategic partnership that both sides deem crucial for the 21st century.