Commerce and Industry Minister Piyush Goyal provided an update on the ongoing discussions with the United States regarding the proposed bilateral trade agreement. Goyal mentioned that the US team is currently in New Delhi for the negotiations. Speaking to reporters at the Pravasi Rajasthani Divas event in Delhi, Goyal expressed that the talks are making progress towards reaching a bilateral trade agreement. He hinted at a possible meeting with the visiting US officials.
A delegation led by Deputy US Trade Representative (USTR) Rick Switzer is currently in the national capital for a two-day trade discussion with Indian counterpart Rajesh Agrawal. Assistant US Trade Representative for South and Central Asia Brendan Lynch, the US’ chief negotiator for the pact, is scheduled to engage in discussions with Darpan Jain, India’s chief negotiator and Joint Secretary in the Department of Commerce.
The visit is seen as crucial as both India and the US are striving to finalize the initial phase of the agreement. This visit marks the second trip by US officials following the imposition of tariffs on Indian goods entering the American market due to the procurement of Russian crude oil.
Notably, the last visit by US officials to India took place on September 16. Additionally, Goyal led an official delegation to the US for trade discussions on September 22 and had visited Washington earlier in May.
The ongoing talks hold significance, especially after Commerce Secretary Rajesh Agrawal expressed optimism about achieving a framework trade deal within the current year. This deal aims to address tariff issues that would benefit Indian exporters.
While acknowledging that the Bilateral Trade Agreement (BTA) will require time, Agrawal highlighted that India is actively engaged in prolonged negotiations with the US to establish a framework trade deal that addresses the reciprocal tariff challenges faced by Indian exporters. The negotiations between India and the US encompass two tracks: one focusing on a framework trade deal to tackle tariffs and another on a comprehensive trade agreement.
Leaders from both nations directed officials to negotiate an agreement in February, with plans to conclude the initial phase by the fall of 2025. The objective of the agreement is to elevate bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion. In 2024-25, the US retained its position as India’s largest trading partner, with bilateral trade amounting to USD 131.84 billion, including USD 86.5 billion in exports.
The US represents approximately 18% of India’s total goods exports, 6.22% of imports, and 10.73% of total merchandise trade. The trade agreement is deemed crucial as India witnessed a decline in merchandise exports to the US for the second consecutive month in October, dropping by 8.58% to USD 6.3 billion, primarily due to substantial tariffs imposed by the US.