US Treasury Secretary Scott Bessent has expressed confidence that India is poised to be the first country to finalize a trade agreement with Washington, citing fewer complications in negotiations compared to other partners.

Speaking at a closed-door media briefing in Washington on the sidelines of the IMF and World Bank Spring Meetings, Bessent said the trade deal with India is “very close” to being concluded.

“India has fewer non-tariff trade barriers, no currency manipulation, and very little in terms of government subsidies,” Bessent noted, highlighting that the remaining concerns primarily revolve around India’s high tariffs.

His comments come as US Vice President J.D. Vance wraps up a key visit to India, during which he met Prime Minister Narendra Modi to discuss trade and economic cooperation. In Jaipur on Tuesday, Vance confirmed that both nations had officially finalized the terms of reference for negotiations, calling it a “vital step” towards a broader deal.

“This marks a roadmap toward realizing President Trump and Prime Minister Modi’s vision of deeper economic ties,” Vance said. “There’s so much our two nations can accomplish together.”

If no agreement is reached, India risks being subjected to a 26% tariff starting July under Trump’s proposed reciprocal tariff regime. However, India has already taken steps toward compromise, including reducing tariffs on US exports such as Harley-Davidson motorcycles and bourbon whiskey — frequent sticking points in past talks.

Additionally, India has committed to increasing energy and defense imports from the US, further aligning economic interests.

Indian Finance Minister Nirmala Sitharaman also emphasized the urgency of reaching a deal, stating that “India was one of the first to initiate trade talks with the US.” Speaking at Stanford University’s Hoover Institution earlier this week, she reiterated India’s commitment to deepening trade ties.

“The US is India’s largest trading partner, and our government fully recognizes its significance,” Sitharaman said. At a separate diaspora event, she expressed hope that the first phase of the trade deal would be finalized by autumn.

In 2024, bilateral trade between the two nations reached $129 billion, with India enjoying a $45.7 billion surplus.

This emerging agreement could set the stage for a broader, modernized trade relationship aimed at boosting jobs and economic growth in both nations.