What’s Next for India-US Trade Talks? Key Officials Set to Meet Soon!
Upcoming US Delegation Visit to India
New Delhi: A delegation from the United States is anticipated to arrive in India next week to engage in discussions regarding the proposed bilateral trade agreement, according to sources on Thursday.
This visit is significant as both nations aim to finalize the initial phase of the agreement.
One source mentioned, “The team is expected next week, with dates currently being finalized and discussions ongoing.”
This marks the second visit of US officials following the implementation of a 25% tariff and an additional 25% penalty on Indian imports linked to Russian crude oil purchases.
The previous visit occurred on September 16.
On September 22, Commerce and Industry Minister Piyush Goyal led an official team to the US for trade discussions.
He was joined by Rajesh Agrawal, the then-special secretary in the ministry, who is now the commerce secretary.
Brendan Lynch serves as the Chief Negotiator for the US on this agreement.
The upcoming visit is crucial as Agrawal recently expressed optimism about achieving a framework trade deal with the US within this year, which aims to resolve tariff issues favorably for Indian exporters.
Agrawal acknowledged that while the Bilateral Trade Agreement (BTA) will require time, India is engaged in extensive negotiations with the US to tackle the reciprocal tariff challenges faced by Indian exporters.
India and the US are currently involved in two parallel negotiations: one focusing on a framework trade deal to address tariffs and the other on a comprehensive trade agreement.
In February, leaders from both countries instructed officials to pursue a proposed Bilateral Trade Agreement (BTA).
The goal is to finalize the first phase of the agreement by the fall of 2025, with six negotiation rounds already completed. This pact aims to significantly increase bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.
Earlier in May, Goyal visited Washington and held discussions with US Commerce Secretary Howard Lutnick.
For the fourth consecutive year in 2024-25, the US has remained India's largest trading partner, with bilateral trade reaching USD 131.84 billion (including USD 86.5 billion in exports).
The US constitutes approximately 18% of India's total goods exports, 6.22% of imports, and 10.73% of the nation's overall merchandise trade.
However, India's merchandise exports to the US saw a decline for the second month in a row in October, dropping by 8.58% to USD 6.3 billion due to the substantial tariffs imposed by the US, while imports rose by 13.89% to USD 4.46 billion during the same period, as per data from the commerce ministry.