New Delhi — India and the United States are close to finalizing the first phase of their proposed Bilateral Trade Agreement (BTA), marking a significant step forward in strengthening economic ties between the two nations. According to Commerce Secretary Rajesh Agrawal, the negotiations have been progressing rapidly through a series of virtual discussions.
“We are nearing closure on the first tranche of the talks,” Agrawal said on Monday, while noting that no specific deadline has been set for the agreement’s completion.
The momentum comes after a series of positive statements from U.S. President Donald Trump, who recently expressed optimism about trade relations with India. Speaking at the White House, Trump praised his dialogue with Prime Minister Narendra Modi, saying the talks were “going great” and hinting at a possible visit to New Delhi next year.
“I think we’re pretty close to doing a deal that’s good for everybody,” Trump said at a ceremony for the new U.S. Ambassador to India, Sergio Gor. He also indicated that tariffs on Indian goods could be lowered “at some point,” raising expectations of an imminent trade breakthrough.
Despite the progress, India has been cautious to protect key domestic interests. Commerce Minister Piyush Goyal reiterated on Tuesday that India will not compromise on issues affecting farmers, the dairy sector, or workers.
“We are working on a fair, equitable, and balanced trade deal,” Goyal said, emphasizing that the timing of such an agreement would be based on “mutual readiness.”
“The trade deal can happen tomorrow, it can happen next month, it can happen next year,” he added, underscoring India’s preparedness for any scenario.
Meanwhile, India has moved to reduce its trade surplus with the U.S. by increasing imports of American energy products. On Monday, Minister of Petroleum and Natural Gas Hardeep Singh Puri announced a landmark structured contract for India to import around 2.2 million tonnes per year of liquefied petroleum gas (LPG) from the U.S. Gulf Coast beginning in 2026. This represents nearly 10 percent of India’s annual LPG imports.
Describing the agreement as “a historic development,” Puri said the deal marks the first structured LPG contract of its kind between the two countries and opens new avenues for U.S. fuel in one of the world’s fastest-growing LPG markets.
As negotiations continue, officials on both sides remain hopeful that a comprehensive trade agreement covering goods, services, and investment will soon follow the initial phase. (Source: IANS)
