Negotiations for a landmark India-United States Bilateral Trade Agreement (BTA) have resumed in New Delhi, with high-level US trade officials joining their Indian counterparts for intensive discussions aimed at transforming the economic partnership between the two countries.

Commerce and Industry Minister Piyush Goyal confirmed the arrival of the US delegation and indicated that talks are progressing well, with additional American officials expected to participate as negotiations intensify.

The renewed dialogue follows recent statements by Goyal in Paris, where he emphasised that both nations are working toward providing preferential market access for their respective businesses. The current round of talks builds on commitments made in February 2025, when Prime Minister Narendra Modi and US President Donald Trump jointly launched an ambitious plan to double bilateral trade from $191 billion to $500 billion by 2030. The immediate focus is on finalising an interim agreement by the end of June, ahead of the expiration of a critical 90-day US tariff suspension on July 8, 2025.

The negotiations center on reducing tariff and non-tariff barriers, improving market access, and strengthening supply chain resilience. India is seeking significant tariff reductions—potentially lowering average duties from 13% to 4%—and full exemption from the additional 26% reciprocal tariffs imposed by the US during the Trump administration. In return, the US is pressing for greater access to India’s markets for industrial goods, automobiles, wines, petrochemicals, dairy, and select agricultural products.

The dairy sector remains a particularly sensitive issue, with US exporters seeking entry into India’s highly protected market, which supports over 80 million small-scale farmers. Meanwhile, India is pushing for better access for its labour-intensive exports, such as textiles and leather goods, and aims to secure preferential treatment for its industrial and agricultural products in the US market.

The negotiations are taking place amid heightened trade tensions following the US’s announcement of sweeping tariff hikes under President Trump’s new trade policy in April 2025, including a 10% universal tariff and a 26% country-specific reciprocal tariff on Indian goods. While pharmaceuticals are exempt, these tariffs have been legally contested in US courts, creating an atmosphere of uncertainty. The US administration has paused the additional 26% tariff for 90 days, giving both sides a narrow window to reach an agreement before the suspension expires.

India is also considering its options should talks fail, including retaliatory tariffs or pursuing a dispute at the World Trade Organisation (WTO). The US maintains that its tariffs are national security measures, a position India disputes and has challenged at the WTO, particularly regarding auto imports.

Both governments view the BTA as a strategic opportunity to reshape global trade patterns and supply chains, especially in critical sectors such as technology, pharmaceuticals, defence, and agriculture. The US remains India’s largest trading partner, accounting for a significant share of exports and imports, and both sides are under pressure to finalise a deal that balances domestic interests with the broader goal of economic expansion.

India has made it clear that it will not negotiate under duress, emphasising that any agreement must protect national interests and benefit its people. As the July 8 deadline approaches, the pace of negotiations has accelerated, with both sides aiming to secure an interim agreement that could pave the way for the broader, multi-sector deal targeted for completion by fall 2025.

The ongoing India-US trade negotiations in Delhi represent a pivotal moment in bilateral relations, with the potential to reshape not only the economic landscape between the two nations but also their roles in the evolving global trade order.

Based On ANI Report