India and the United States have agreed to initiate sectoral discussions as part of the proposed Bilateral Trade Agreement (BTA) in the coming weeks, the Ministry of Commerce announced on Saturday. This decision follows a four-day negotiation session between senior officials from both nations, which concluded in New Delhi.
According to the ministry, expert-level engagements under the BTA will commence virtually in the upcoming weeks, paving the way for an in-person negotiating round. The discussions are geared toward fostering economic growth, ensuring fairness, strengthening national security, and enhancing job creation. Both parties aim to finalize the initial phase of the agreement by fall 2025.
The recent negotiations focused on expanding market access, reducing tariff and non-tariff barriers, and integrating supply chains in a mutually beneficial manner. A delegation of US officials, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, participated in the discussions.
These talks followed Commerce and Industry Minister Piyush Goyal’s visit to Washington from March 4-6, during which he met with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Subsequent video conferences further advanced trade discussions between the two sides.
The Commerce Ministry emphasized that the successful conclusion of the latest discussions signifies progress in strengthening India-US trade and investment relations. The proposed agreement is expected to unlock new business opportunities, drive economic integration, and reinforce the economic partnership between the two countries.
Both nations expressed satisfaction with the outcomes and reaffirmed their commitment to ongoing collaboration. They aim to conclude the first phase of the agreement by fall 2025 and have set a target to double bilateral trade to $500 billion by 2030, up from the current $190 billion.
During a recent statement, former US President Donald Trump described Indian Prime Minister Narendra Modi as a “very smart man” and a “great friend.” Trump acknowledged ongoing tariff negotiations and expressed optimism about a favorable outcome. He has previously criticized high tariffs imposed by India and other nations on American goods, even announcing plans to impose reciprocal tariffs on key trading partners, including India, starting April 2.
As part of the negotiations, the US has sought duty reductions on various industrial goods, automobiles, wines, petrochemicals, dairy, and agricultural products like apples, tree nuts, and alfalfa hay. Meanwhile, India is advocating for duty cuts in labor-intensive sectors, such as textiles. Indian industry representatives have urged the government to seek exemptions from the proposed US reciprocal tariffs to protect domestic businesses, as the US remains India’s largest trading partner.
The US is also pressing India to open its agriculture sector to American businesses. However, experts believe India may exclude dairy and agriculture from trade talks due to their political sensitivity. In 2024, US agricultural exports to India totaled $1.6 billion, with key commodities including almonds ($868 million), pistachios ($121 million), apples ($21 million), and ethanol ($266 million).
India has previously eased trade barriers with the US. In June 2023, it lifted retaliatory tariffs on eight American products, including chickpeas, lentils, and apples, which were imposed in 2019 after the US increased tariffs on certain steel and aluminum imports.
In 2024, India’s top exports to the US included drug formulations and biologicals ($8.1 billion), telecom instruments ($6.5 billion), precious and semi-precious stones ($5.3 billion), petroleum products ($4.1 billion), and cotton garments ($2.8 billion). The US, in turn, exported crude oil ($4.5 billion), petroleum products ($3.6 billion), coal and coke ($3.4 billion), cut and polished diamonds ($2.6 billion), and electric machinery ($1.4 billion) to India.
The bilateral trade between India and the US in goods reached $119.71 billion in 2023-24, with India exporting $77.51 billion worth of goods and importing $42.19 billion, resulting in a $35.31 billion trade surplus. The US has also been a key investor in India, with foreign direct investments amounting to $67.8 billion between April 2000 and September 2024.
As India and the US continue to refine the details of the BTA, both nations remain committed to fostering a trade partnership that enhances economic growth and strengthens bilateral ties.
