India and US Set to Finalize Groundbreaking Bilateral Trade Agreement Ahead of Schedule

Progress on Bilateral Trade Agreement

New Delhi: India and the United States are making strides towards signing the initial phase of a Bilateral Trade Agreement (BTA) aimed at reducing tariffs ahead of the anticipated deadline of Fall 2025, with the terms already established.

Rajesh Agarwal, Additional Secretary of Commerce, announced on Tuesday that the terms of reference for the BTA were finalized during a recent visit from the US delegation. Virtual negotiations on various chapters of the agreement are set to commence this week, with in-person discussions expected to begin by the end of the month.

Commerce Secretary Sunil Barthwal emphasized India's commitment to trade liberalization with the US, stating that both nations stand to gain significantly if the agreement is concluded before the Fall of 2025.

He noted, "Our goal for the first tranche of the BTA by fall does not preclude the possibility of finalizing it sooner. Achieving this before the fall would be advantageous for both countries."

An agreement on tariff reductions could enhance trade volumes between the US and India. It's important to note that the recent 90-day pause on implementing higher duties is applicable to all nations, not just India.

On April 9, US President Donald Trump announced a halt to the enforcement of increased tariffs on several countries, including India.

Commerce Minister Piyush Goyal recently remarked on the positive negotiations taking place with the US, highlighting India's strong case for a bilateral trade deal based on its growth potential and demographic advantages.

Goyal stated, "With the expected growth over the next 25-30 years and a large, youthful population eager for goods and services, India presents a compelling opportunity for a robust agreement with the US."

During Prime Minister Narendra Modi's visit to Washington, both leaders set an ambitious goal of achieving $500 billion in bilateral trade by 2030.