Prime Minister Narendra Modi and US President Donald Trump have agreed to advance negotiations on a multi-sector Bilateral Trade Agreement (BTA), marking a significant step towards enhancing economic cooperation between the two nations. This agreement, finalised in February 2025, aims to boost bilateral trade to $500 billion by 2030, focusing on key sectors such as energy, defence, and technology.

The BTA is designed to increase market access, reduce tariffs and non-tariff barriers, and deepen supply chain integration, thereby facilitating smoother trade flows and creating new opportunities for businesses on both sides.

As part of this initiative, both leaders have designated senior representatives to accelerate negotiations. An Indian delegation led by Commerce and Industry Minister Piyush Goyal recently visited Washington, DC, to meet with US officials, including the US Commerce Secretary and the US Trade Representative. These discussions are part of a broader effort to strengthen trade ties and promote economic growth between India and the US.

The negotiations come amid ongoing discussions about tariff liberalization. US President Trump has stressed the need for India to reduce its tariffs, which he believes hinder American exports.

In response, India has hinted at tariff liberalization, citing recent trade agreements with other countries that involve similar measures.

Despite these challenges, both nations remain committed to concluding a mutually beneficial trade agreement that aligns with their ambitious trade targets.

The US has also been urging India to increase imports of American oil, gas, and defence equipment to balance their trade relationship, reflecting Trump's "America First" trade policy.

With an April 2 deadline for reciprocal tariffs imposed by the US looming, India is closely monitoring the negotiations to protect its export interests.

ANI