New Delhi— India and the United States are working to finalize the first tranche of a Bilateral Trade Agreement (BTA) aimed at reducing tariffs ahead of the agreed Fall 2025 deadline, officials said Tuesday.
The terms of reference for the pact have already been finalized, paving the way for formal negotiations to begin soon.
“The terms of reference for the India-US BTA were finalized during the recent visit of the U.S. delegation,” said Rajesh Agarwal, Additional Secretary in the Ministry of Commerce. “Virtual negotiations on various chapters are set to begin this week, with in-person discussions likely to start by the end of the month.”
Commerce Secretary Sunil Barthwal confirmed that India is committed to pursuing trade liberalization with the U.S.
“Both India and the U.S. stand to gain significantly if we conclude the agreement before the Fall 2025 target,” Barthwal told reporters. “Just because we’ve set a Fall deadline doesn’t mean we can’t complete it earlier. Finalizing it ahead of schedule would be mutually beneficial.”
If the two countries can agree on tariff reductions, the pact is expected to boost bilateral trade volumes. A temporary 90-day pause on the implementation of steeper duties by the U.S.—announced on April 9—is not country-specific and applies to all trading partners, including India.
Meanwhile, Commerce Minister Piyush Goyal noted that negotiations with the U.S. were progressing well.
“India presents a very strong case for a trade agreement with the U.S., considering our growth potential and demographic advantage,” Goyal said last week. “With a large, young, and aspirational population, India will drive demand for goods and services over the next 25 to 30 years, making it a valuable trade partner.”
During Prime Minister Narendra Modi’s recent visit to Washington, he and U.S. President Donald Trump set a target of $500 billion in bilateral trade by 2030. (Source: IANS)
