Union Commerce and Industry Minister Piyush Goyal recently held high-level discussions with US Commerce Secretary Howard Lutnick in Washington, D.C., marking a significant step forward in the ongoing negotiations for the India-US Bilateral Trade Agreement (BTA).

Goyal described the talks as “good discussions” aimed at expediting the first tranche of the agreement, sharing an image of the meeting on social media to underscore the positive momentum.

This visit is particularly important as it comes during a critical 90-day pause on tariff hikes imposed by the US administration, including a suspended 26 percent tariff on select Indian goods, which is set to expire on July 9, 2025. The pause provides both nations with a window of opportunity to secure early wins and finalize the initial phase of the trade pact before the resumption of higher tariffs.

During the visit, Goyal also met with US Trade Representative Jamieson Greer, with both sides reviewing progress made over the past two months of negotiations. These meetings are designed to provide political direction and assess the outcomes of technical-level talks led by chief negotiators, including India’s Rajesh Agrawal, who is engaging with his US counterparts from May 19 to 22.

The current focus of the negotiations is on resolving key issues such as market access, rules of origin, and non-tariff barriers. India is advocating for reduced duties on labour-intensive exports like textiles, gems and jewellery, leather goods, shrimp, oil seeds, grapes, and bananas. Conversely, the US is seeking concessions in sectors including industrial goods, electric vehicles, dairy, wines, petrochemicals, and certain agricultural products.

Goyal has emphasized the complementary nature of the India-US trade relationship, highlighting the minimal direct competition between the two economies and the potential for mutual benefit. He described the partnership as “truly contemporary, a win-win for both,” and projected that India’s economy could grow from $4 trillion to $35 trillion by 2047, offering vast opportunities for American businesses.

Both nations have set ambitious goals for their trade relationship. During a meeting in February 2025 between President Trump and Prime Minister Narendra Modi, the leaders resolved to deepen trade and investment ties, aiming to double bilateral trade to $500 billion by 2030 as part of “Mission 500.” India’s exports to the US rose 11.6 percent to $86.5 billion in 2024-25, while imports increased 7.4 percent to $45.3 billion, resulting in a trade surplus of $41 billion in India’s favour.

Negotiators are working toward concluding the first phase of the BTA by fall 2025 (September-October), with both sides seeking to secure preliminary outcomes and avoid the reinstatement of suspended tariffs. While significant progress has been reported, final agreements will depend on consensus at the ministerial level and the resolution of outstanding issues, particularly in sensitive sectors.

Minister Goyal’s visit has injected fresh political momentum into the India-US trade talks, with both sides aiming to secure an interim agreement and lay the groundwork for a comprehensive bilateral trade partnership that promises substantial economic gains for both countries.

Based On ANI Report