Trade deal crucial to deepen US-India economic ties: Keshap

Washington, Dec 23 (IANS) The United States and India must conclude a long-pending trade agreement to unlock deeper economic integration and reinforce business confidence on both sides, Atul Keshap, President of the US-India Business Council (USIBC), said following a recent visit to India.

Keshap said he travelled to India with USIBC Chair Ed Knight to hear directly from Indian leaders and businesses about their views on America, trade negotiations and investment flows.

“We wanted to hear from Indian voices about their perspectives on America and on the trade deal and on business,” he said, describing the visit as “very inspiring.”

He said Indian interlocutors conveyed that negotiations with Washington had been conducted diligently over multiple rounds.

“What we heard is that from the Indian perspective, they have offered the United States an excellent proposal, and they’re hoping that the United States will conclude the trade negotiations and that we will have a trade agreement,” he said.

While declining to comment on the details of the talks, Keshap said the business community was united in its expectations.

“We emphatically want a trade deal. We want it to happen as soon as possible. We want it to be ambitious,” he said, adding that it should serve as “the foundation for even further integration of the American and Indian economies.”

Addressing US tariffs on Indian exports, Keshap said India had worked to diversify its export markets to reduce the impact.

He noted that India’s merchandise exports to the United States had nevertheless grown in 2025.

“This is an element of the ongoing negotiation where both sides are trying to figure out where that final tariff number might end up,” he said.

He said uncertainty around tariffs underscored why businesses wanted an agreement.

“It will create a psychological signal that’s extremely important in both directions of greater confidence,” he said, noting that investment decisions were continuing even amid negotiations.

Keshap pointed to major US investment announcements in India in sectors such as data centres and artificial intelligence.

“The US and India, as the leading democracies on Earth, ought to be working with each other to develop these frontier technologies,” he said.

He said a deal reducing tariffs would benefit producers and exporters in both countries. “Lower tariffs among friends is the best possible outcome,” he said, adding that innovative proposals from India could expand market access for American exporters.

Keshap said agreeing would help accelerate progress toward the shared goal of $500 billion in bilateral trade in goods and services. “Shared prosperity is what we’re all about,” he said.

The US-India trade talks are taking place against a backdrop of expanding strategic cooperation in defence, supply chains and technology.

Bilateral trade between the two countries has grown steadily over the past decade, with US companies increasingly viewing India as a long-term investment destination.