New Delhi: India and the United States on Wednesday reviewed the ongoing negotiations for a proposed bilateral trade agreement aimed at strengthening economic partnership, the commerce ministry said. The discussions are part of a two-day dialogue in New Delhi, which seeks to finalise a mutually beneficial trade pact.
On Day 1, Commerce Secretary Rajesh Agrawal held talks with US Deputy Trade Representative Rick Switzer. In a social media post, the Department of Commerce said both sides exchanged views on India–US trade and economic ties, including the status of negotiations on the bilateral agreement. Talks will conclude on December 11.
The dialogue holds significance as the Donald Trump administration has imposed a steep 50 per cent tariff on Indian goods entering the United States — a move that continues to impact Indian exporters. Initially, the US levied 25 per cent duty citing a trade deficit of around USD 46 billion in 2024-25, followed by an additional 25 per cent penalty after India purchased Russian crude.
Indian industry is awaiting a breakthrough, as high duties have hurt shipments to the US, which accounts for about 18 per cent of India’s total exports. While exporters are exploring alternative markets, the US remains a key destination.
India has maintained that tariff resolution will be essential for finalising the first phase of the trade pact. The US is seeking duty concessions on agricultural and industrial goods, but India has firmly opposed concessions in the agriculture and dairy sectors.
Speaking at the Pravasi Rajasthani Divas in Jaipur, Commerce and Industry Minister Piyush Goyal said discussions with the US on the proposed agreement are progressing. “Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement,” he told reporters.
The US delegation includes Assistant US Trade Representative for South and Central Asia Brendan Lynch, while Joint Secretary Darpan Jain is India’s chief negotiator. This marks the second visit by US officials since tariff imposition; the previous one was on September 16.
Agrawal has previously noted that the Bilateral Trade Agreement (BTA) will take time, as India and the US are working through two parallel tracks — a framework trade deal to address reciprocal tariff challenges and a comprehensive trade pact.
In February, leaders of both countries directed officials to pursue the agreement, with plans to conclude the first tranche by autumn 2025. So far, six rounds of negotiations have taken place. The goal is to more than double bilateral trade to USD 500 billion by 2030, from the current USD 191 billion.
The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, recording USD 131.84 billion bilateral trade, including USD 86.5 billion in exports. India’s merchandise exports to the US, however, fell for a second month in October, declining 8.58 per cent to USD 6.3 billion.
With PTI inputs