India and the United States have made notable progress toward finalising a mutually beneficial Bilateral Trade Agreement (BTA), with Union Commerce and Industry Minister Piyush Goyal emphasising the positive momentum following his recent meeting with US Commerce Secretary Howard Lutnick.

The two countries are working to sign the first tranche of the BTA, aiming to reduce tariffs and enhance market access before the agreed timeline of fall 2025, with sources indicating that an initial agreement could be reached as early as July 2025.

India has presented a compelling case for a bilateral trade deal, citing its strong economic growth prospects and favourable demographic outlook, including a large, young, and aspirational population expected to drive demand for goods and services over the next 25-30 years.

The negotiations have focused on securing preferential treatment for Indian exports, particularly in labour-intensive sectors such as leather and textiles, while also addressing key issues in the services sector. India is seeking full exemption from the 26% additional tariff imposed by the US on certain goods, and remains protective of sensitive sectors like agriculture and dairy.

Both sides have completed several rounds of consultations, including meetings between India’s Department of Commerce and the US Trade Representative, covering a wide range of tariff and non-tariff matters. The phased approach to the agreement is expected to start with market access for industrial goods and select agricultural products, with subsequent phases addressing broader and more complex trade issues.

The trade talks are taking place against the backdrop of an ambitious bilateral goal set by Prime Minister Narendra Modi and US President Donald Trump to boost total trade to $500 billion by 2030. In 2024-25, the US remained India’s largest trading partner, with bilateral trade reaching $131.84 billion and India maintaining a $41.18 billion surplus in goods.

Both governments have reiterated their commitment to strengthening economic ties, expanding trade and investment, and making supply chains more resilient.

While the US President recently claimed that India offered to remove all tariffs on American goods, he also indicated that there is no rush to finalise the deal, reflecting the complexity and sensitivity of the ongoing negotiations. Indian officials have echoed this sentiment, emphasising that any agreement must be mutually beneficial and carefully balanced to protect domestic interests.

The India-US trade agreement negotiations are progressing positively, with both countries aiming for an early harvest deal focused on tariff reductions and expanded market access. The outcome is expected to significantly deepen economic ties, support job creation, and open new avenues for bilateral commerce and investment.

Based On IANS Report