India sees opportunity in US tariff pause amid ongoing trade talks
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Commerce Secretary Sunil Barthwal has described the United States' reciprocal tariffs as both a challenge and an opportunity for India, as the two nations work toward finalising a bilateral trade agreement aimed at deepening economic ties.
His remarks come shortly after U.S. President Donald Trump announced a temporary suspension of certain reciprocal tariffs for countries actively negotiating with Washington. While the 125% tariff on Chinese imports remains in place, other countries engaged in trade talks with the U.S. will face a 10% reciprocal tariff during the three-month pause.
Speaking on Tuesday, Barthwal emphasised that India is firmly committed to trade liberalisation with the U.S. and sees this moment as a chance to accelerate economic engagement. "India has already chosen a path of trade liberalisation with the United States, and our ongoing negotiations reflect that commitment," he said.
Barthwal added that while the tariff changes pose uncertainties, they also create room for India to expand its trade footprint. “Changes in the global trading order always bring new opportunities. If we stay the course, India-U.S. trade could see substantial growth,” he said.
The Commerce Secretary also confirmed that trade discussions are progressing under the framework set during the Modi-Trump meeting in February 2025. That meeting resulted in a joint pledge to grow bilateral trade to $500 billion by 2030, with a comprehensive Bilateral Trade Agreement (BTA) forming a key part of that plan.
Between March 26 and 29, representatives from India’s Department of Commerce and the U.S. Trade Representative met in New Delhi to discuss next steps toward the BTA. Barthwal revealed that both sides have reached a broad consensus on the way forward, with the first tranche of the agreement expected to be finalized by fall 2025.
As part of the ongoing process, virtual meetings will take place this week, followed by in-person talks in the U.S. later in May when the Indian delegation travels to continue negotiations.
Earlier this month, Union Commerce and Industry Minister Piyush Goyal expressed optimism about the direction of talks, stating that India was navigating the tariff situation wisely with a focus on boosting trade volumes. He also emphasized that both countries are working to increase bilateral trade by two and a half times.