Negotiations between the United States and India over a bilateral trade agreement are continuing, but a final deal does not appear to be close, according to U.S. Trade Representative Jamieson Greer.

Speaking to Indian news agency ANI on Thursday, Greer said he did not believe an agreement was “imminent,” while adding that both sides had identified the major issues still preventing a settlement. His comments come shortly after U.S. President Donald Trump and Indian Prime Minister Narendra Modi held a phone conversation.

Modi described the conversation as “productive,” saying the two leaders discussed bilateral trade, defence, energy, critical technologies and broader international issues. Greer characterised the call as “very constructive.”

The latest discussions come as Washington and New Delhi continue working towards an interim trade agreement. Indian Commerce and Industry Minister Piyush Goyal met Greer during the G20 trade ministers' meeting in Milwaukee, with Goyal indicating that the two sides were working toward an early conclusion of a mutually beneficial agreement.

However, several significant differences remain.

One major point of contention is India's continued purchase of Russian oil. Washington has raised concerns over India's energy trade with Moscow, while New Delhi has maintained that its purchases are driven by energy-security requirements.

India is also seeking preferential tariffs for its exports to the U.S., while attempting to protect politically sensitive sectors, particularly agriculture. These issues have become important elements of the ongoing negotiations.

The trade relationship has faced additional pressure from U.S. tariffs. According to the information provided, Indian exports currently face a 10% U.S. tariff under the latest trade measures, although several major export categories, including generic pharmaceuticals and smartphones, are reportedly outside the scope of that duty.

Experts cited in the report said the remaining issues could be among the most difficult parts of the negotiations. While both countries have reportedly resolved several areas, disagreements over tariffs, agriculture, Russian oil and market access continue to complicate the talks.

The negotiations are taking place against a wider backdrop of strained US-India relations and uncertainty in global energy markets. India's dependence on multiple oil suppliers has increased amid supply disruptions and geopolitical tensions.

For now, officials from both countries continue to negotiate, but Greer's comments indicate that the US-India trade deal may require further discussions before Washington and New Delhi can reach an agreement.