India is in advanced discussions with the United States to finalise a bilateral trade agreement, and the first phase of the pact could be signed by the fall this year, said Union Finance Minister Nirmala Sitharaman.

“The progress of the agreement or the trade agreement that we are working on, at least the first tranche, is something which we hope to conclude positively by the fall this year,” she said.

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Ms Sitharaman was interacting with the Indian diaspora during a community event in San Francisco, where she added that a reciprocal tariff issue is part of a broader trade negotiation strategy.

“The long and short of engaging with the U.S. is not just for this reciprocal tariff-related matter, but in the interest of… our largest trading partner with whom we need to have an agreement,” Sitharaman said.

The Union Finance Minister is on a five-day trip to the US, where she will join the spring meetings of the International Monetary Fund and the World Bank, and the meeting of G20 finance ministers and central bank governors, according to an Indian government statement.

“I have come here because I also have the IMF and World Bank meeting. I am scheduled to meet the Treasury Secretary, my counterpart here. So the keenness with which we are engaging with the US administration, even as I talk, I think the US Vice-President is in India. He will be engaging with the Prime Minister, hopefully this evening or tomorrow,” she added.

The minister also underlined India’s growing role in global knowledge partnerships. She said the World Bank and other global institutions, which are keen on India’s model for digital public infrastructure, skilling in AI, and job creation, are acknowledging the country’s achievements, and India is committed to showcasing and scaling them.

It is to be highlighted that US Vice-President JD Vance also began a four-day visit to India on Monday and will hold talks with Prime Minister Narendra Modi.

Modi and Vance are expected to review progress made on the bilateral agenda outlined in February when the Indian leader met President Donald Trump in Washington.