As India-EU move closer to ‘mother of all deals’, what’s the status of India-US trade pact?

India and European Union are on the cusp of signing a historic trade agreement, which European Commission President Ursula von der Leyen has already hailed as “the mother of all deals”.

According to reports, the India-EU deal has almost been finalised and a formal announcement will be made on January 27 after a high-level meeting between Prime Minister Narendra Modi and European Union leaders – Ursula von der Leyen and European Council António Luis Santos da Costa.

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Both von der Leyen and da Costa are in Delhi to attend the Republic Day 2026 parade in New Delhi as chief guests.

While the deal with the European Union is certain, the negotiations for a trade agreement with the US are ongoing.

What is the status of India-US trade deal?

According to an IANS report, the negotiations on most parts are over and only the last few hurdles remain in the proposed India-US bilateral trade agreement.

Officials from India and the US are pushing to resolve the last few hurdles, with both sides said to be close in substance but still divided on several sensitive issues.

Negotiations over the last few weeks have narrowed to a small set of unresolved items and technical teams of both countries are continuing discussions.

Once these issues are cleared by the US Trade Representative and India’s Commerce Ministry, the draft of the deal would be sent to Prime Minister Narendra Modi and President Donald Trump for final approval.

The report claimed that Modi and Trump have had several rounds of phone calls during the last couple months to discuss the trade deal.

During his World Economic Forum Annual Meeting 2026 address in Davos, Trump expressed confidence that “a great trade deal” between India and the US will be signed soon.