India and the United States are advancing negotiations on a multi-sector Bilateral Trade Agreement (BTA), with recent talks held in Washington from April 23-25 focusing on concluding the first phase by Fall 2025 (September-November).

The discussions, led by India’s Department of Commerce and the U.S. Trade Representative, covered tariff reductions, non-tariff barriers, and customs facilitation across 19 chapters, aiming to finalize a "mutually beneficial" pact that addresses market access, supply chain integration, and regulatory standards.

Both sides identified "early mutual wins" to expedite progress, though specific sectors remain under negotiation. The U.S. seeks lower tariffs on industrial goods, automobiles (including EVs), wines, petrochemicals, dairy, and agricultural products like apples, while India aims for duty cuts on labour-intensive exports such as textiles, apparel, leather, gems, and seafood.

The BTA negotiations are part of the broader U.S.-India COMPACT initiative launched in February 2025, which emphasises military partnership, technology transfer, and economic integration.

This aligns with the "Mission 500" goal announced during Prime Minister Modi’s visit to Washington in February 2025, targeting $500 billion in bilateral trade by 2030.

The U.S. reported a goods trade deficit of $45.7 billion with India in 2024, a 5.1% increase from 2023, and views the BTA as a tool to narrow this gap through enhanced market access and reduced trade barriers.

India, meanwhile, recorded a $41.18 billion trade surplus with the U.S. in FY2024-25, driven by $86.51 billion in exports.

Sectoral expert-level talks, conducted virtually until now, will transition to in-person engagements by late May 2025 to build consensus on technical details.

The agreement’s strategic importance is underscored by its inclusion in discussions on defence collaboration, technology sharing, and Indo-Pacific security during high-level diplomatic exchanges, including a March 29 call between Foreign Secretary Vikram Misri and U.S. Deputy Secretary of State Christopher Landau.

The U.S. has also acknowledged India’s cooperation in addressing illegal immigration, linking it to broader efforts to strengthen bilateral trust. With reciprocal tariffs on Indian exports paused until July 8, the BTA’s progress could mitigate the impact of potential tariff hikes under U.S. trade policies.

Both nations aim to leverage the agreement to boost economic resilience, job creation, and innovation, reflecting shared ambitions articulated in their respective "Amrit Kaal" and "Golden Age" visions.

ANI