Washington: White House economic adviser Kevin Hassett said on Monday that a trade deal with India could take shape “soon.”

While speaking to CNBC, Hassett highlighted that both nations are “good friends” and the Trump administration remains “still quite hopeful” about the agreement.

“I think we're still quite hopeful. They're good friends, and we're hoping we can work it out soon,” he added. Hassett also noted that it’s a “complicated situation” due to India’s ties with Russia.

“I've spoken to the ambassador. We've had visits and I think that it's a complicated situation, because the interaction between what India does with Russia and what India does with us. But it got pretty complicated, because there are a lot of different variables in the India-American relationship,” he emphasised.

Hassett’s remarks come on a day when Commerce Secretary Rajesh Agrawal also indicated that the trade agreement is “nearing closure.”

Agrawal told journalists in New Delhi that the two countries have been holding regular virtual rounds of talks on the Bilateral Trade Agreement (BTA). Although no formal deadlines can be set on the issue, the first stage of the trade talks is progressing swiftly, he added.

US President Donald Trump offered positive signals on strengthening ties between India and the US last week, renewing expectations that the two countries could soon formalise a trade agreement.

Trump told reporters at the White House on Thursday that his discussions with Prime Minister Narendra Modi were “going great” and said that he may visit Delhi next year.

Earlier on Monday, Trump said that he plans to “lower tariffs” imposed on India “at some point”, indicating that a breakthrough in the trade talks could come soon.

“I think we're pretty close to doing a deal (with India) that's good for everybody,” Trump said, in answer to a question from the media, at the ceremony for swearing in Sergio Gor as the new US Ambassador to India.

While some Indian officials have expressed optimism about a deal being concluded soon, Commerce Minister Piyush Goyal said on Tuesday that India would not compromise on the interests of farmers, the dairy sector and workers in agreements with other nations.

“We are working on a fair, equitable and balanced trade deal," he said.

The minister further stated that the timing of such deals would depend on mutual readiness.

"The trade deal can happen tomorrow, it can happen next month, it can happen next year... but as a government, we are preparing for any contingency," he added.

India has already started buying more oil and gas from the US. The move is aimed at reducing India’s trade surplus with the US, an issue that had figured in the earlier rounds of trade talks.

In this context, Minister of Petroleum and Natural Gas Hardeep Singh Puri announced on Monday that India’s public sector oil companies have successfully concluded a one-year structured contract to import around 2.2 million tonnes per annum of LPG from the US Gulf Coast during 2026.

This represents close to 10 per cent of India’s annual LPG imports and marks the first such structured LPG contract with the US for the Indian market.

The minister described the decision “as a historic development,” noting that one of the world’s largest and fastest growing LPG markets has now opened up to the US.

IANS