India and the United States are advancing negotiations to finalize the first tranche of a Bilateral Trade Agreement (BTA) aimed at reducing tariffs before the fall of 2025. The terms of reference for the agreement have been finalized, and virtual negotiations on various chapters are set to begin this week, followed by physical discussions later this month.
Commerce Secretary Sunil Barthwal emphasized India’s commitment to trade liberalization with the US, stating that both nations stand to benefit from an expedited agreement. Additional Secretary Rajesh Agarwal confirmed the timeline, noting that the agreement could be completed ahead of the fall deadline.
The agreement is expected to enhance trade between the two countries by reducing tariffs, fostering economic growth, and strengthening bilateral relations. The 90-day pause on steeper duties, implemented by US President Donald Trump on April 9, applies universally and is not specific to India.
Commerce Minister Piyush Goyal highlighted the positive trajectory of negotiations, citing India’s compelling case for a trade deal based on its growth potential and demographic advantages. He pointed to India’s large, aspirational, and youthful population as a key driver of demand for goods and services over the next 25-30 years.
Prime Minister Narendra Modi and US President Trump have set an ambitious target of achieving $500 billion in bilateral trade by 2030, as outlined in a joint statement during Modi’s visit to Washington. This goal underscores the strategic importance of the BTA in fostering economic cooperation and mutual prosperity.
The ongoing negotiations reflect the shared commitment of India and the US to deepen their economic partnership and address global trade challenges. The successful implementation of the BTA will mark a significant milestone in the bilateral relationship, paving the way for enhanced collaboration across sectors.
