India and the United States have made progress towards an interim bilateral trade agreement, but uncertainty over American tariffs, manufacturing overcapacity investigations, agricultural market access and Russian oil purchases continues to complicate negotiations. On 15 October 2026, India's Commerce Secretary said the first phase had been finalised and was undergoing legal drafting, although the agreement was not yet signed. The issue highlights Section 301 investigations, changes in US trade law following a Supreme Court judgment, forced-labour import restrictions, India's export competitiveness and the challenge of securing a stable, mutually beneficial trade relationship.