Foreign Secretary Vikram Misri has confirmed that India is actively engaged in discussions with the United States regarding a potential Bilateral Trade Agreement (BTA). He emphasised that ongoing contacts are maintained under a dedicated framework separate from other trade verticals, underlining the steady progress in talks aimed at strengthening bilateral economic ties.

Misri noted that while discussions are advancing, the precise structure and staging of the BTA—whether it will be executed in phases or as a comprehensive deal—remain subjects of open and flexible negotiation between the two countries. These negotiations follow the framework set by leadership in both nations, underscoring a mutual commitment to developing a deal that is beneficial to both sides.

The broader economic backdrop lends further significance to these talks, as the US administration has recently postponed the imposition of additional tariffs on India, extending the window for constructive trade engagement at least until August 1.

Senior officials reiterated India’s progress and concrete steps toward finalising a BTA, with the Chief Negotiator and Special Secretary of the Ministry of Commerce, Rajesh Aggarwal, participating in discussions throughout July. Both parties have highlighted the pursuit of a “mutually beneficial deal,” reiterating that the roadmap and timeline for the agreement will be determined jointly as talks progress.

Landmark India-UK Trade Agreement

Alongside ongoing negotiations with the US, India has achieved a significant trade milestone with the United Kingdom by signing the Comprehensive Economic and Trade Agreement (CETA) on July 25, 2025. The agreement was signed by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, witnessed by Prime Ministers Narendra Modi and Keir Starmer of India and the UK, respectively.

CETA marks a new chapter in India’s engagements with developed economies and is expected to substantially boost India-UK bilateral trade, which currently stands at approximately $56 billion, with the goal of doubling this amount by 2030.

The agreement provides unprecedented duty-free access for 99% of India’s exports to the UK, benefiting labour-intensive sectors like textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, as well as high-growth areas such as engineering goods, automotive components, and organic chemicals.

The pact also expands opportunities in IT and IT-enabled services, financial, legal, professional, and educational services, as well as digital trade. Notably, CETA secures India’s participation in the Double Contribution Convention, exempting Indian professionals and their employers from UK social security payments for up to three years—a move that enhances the global competitiveness of Indian talent.

Broader Economic And Social Impacts

India’s new trade agreement with the UK is designed for inclusivity and broad-based growth. Specific provisions aim to increase access to global value chains for women and youth entrepreneurs, farmers, fishermen, start-ups, and MSMEs. Further, the agreement features initiatives to promote innovation, encourage sustainable practices, and reduce non-tariff barriers, signalling a commitment to trade modernisation and resilience.

Projected outcomes of CETA include the creation of new jobs, the expansion of exports, and deeper economic integration between India and the UK. These developments, set against the backdrop of dynamic India-US engagement, indicate India’s strategic progress in enhancing its role in global trade, improving its export potential, and forging resilient partnerships with major developed economies.