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India and US Steadily Advance on Trade Pact, Despite US Government Shutdown: Piyush Goyal

October 7, 2025
in Business
Reading Time: 3 min

“India and the United States are engaged in continuous dialogue regarding a proposed bilateral trade agreement, and we see every possibility of meeting the November deadline for concluding these talks,” stated Commerce and Industry Minister Piyush Goyal on Tuesday, October 7, 2025.

Addressing reporters in Doha, Goyal acknowledged the current U.S. government shutdown, noting that while discussions are progressing, the exact timing and location for the next round of in-person negotiations remain uncertain. “You all know, the U.S. government is currently in shutdown mode. So, keeping that in mind, we’ll have to see how, where, and when the discussions can take place,” he explained.

The U.S. government ceased operations on October 1, 2025, after Congress failed to pass a crucial funding bill. This has led to a temporary halt in pay for many federal employees and the closure of various service centers, though essential services like defense and social work continue.

During his one-day official visit to Doha, where he led a business delegation, Goyal emphasized the ongoing nature of the India-U.S. trade talks. “We are in constant dialogue with the U.S. on the trade pact, and discussions are happening at various levels. We will provide more details soon on our strategy for moving forward,” he affirmed.

When pressed on the November deadline, Goyal reiterated, “There is every possibility.” Last month, the Minister led an official delegation to New York for trade discussions. Following these constructive meetings, both India and the U.S. expressed their commitment to continuing negotiations for a mutually beneficial bilateral trade agreement.

Key meetings during the visit included discussions with United States Trade Representative (USTR) Jamieson Greer and U.S. Ambassador-designate to India Sergio Gor. These deliberations were particularly significant as they followed the U.S.’s decision to impose a 25% reciprocal tariff, plus an additional 25% penalty, on Indian goods entering the American market. This measure was in response to India’s purchase of Russian crude oil, resulting in a total of 50% additional import duty on certain Indian products.

The initiative to negotiate a Bilateral Trade Agreement (BTA) was launched in February of this year by the leaders of both countries. The goal was to conclude the initial phase of the pact by the fall (October-November) of 2025. To date, five rounds of negotiations have been completed. The overarching aim of this agreement is to more than double the bilateral trade volume, targeting $500 billion by 2030 from its current $191 billion.

For the fourth consecutive year in 2024-25, the U.S. remained India’s largest trading partner. Bilateral trade reached $131.84 billion, with Indian exports accounting for $86.5 billion. The U.S. is a crucial market for India, representing approximately 18% of India’s total goods exports, 6.22% of its imports, and 10.73% of its total merchandise trade.

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