A team of senior Indian officials is scheduled to visit the United States this week to engage in critical trade discussions. Sources indicate that negotiations for the proposed Bilateral Trade Agreement (BTA) are progressing positively, building on directives from the leaders of both countries back in February.
The current plan is to conclude the first phase of this agreement by the autumn of 2025. To date, five rounds of negotiations have successfully taken place.
This upcoming visit follows a recent trip by Commerce and Industry Minister Piyush Goyal to New York last month, where India and the US agreed to continue their efforts towards an early finalization of a mutually beneficial trade pact. Both delegations reported constructive meetings covering various aspects of the proposed deal.
During his visit, the Minister met with key figures, including Jamieson Greer, the United States Trade Representative (USTR), and Sergio Gor, the US Ambassador-designate to India.
These negotiations carry significant weight, particularly given the existing tariffs imposed by the US. Currently, Indian goods entering the American market face a 25% reciprocal tariff and an additional 25% penalty, primarily related to India’s purchase of Russian crude oil, resulting in a total additional import duty of 50% on affected Indian goods.
The overarching goal of this BTA is ambitious: to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion. The United States has consistently been India’s largest trading partner for the past four years, with bilateral trade reaching $131.84 billion in 2024-25, including $86.5 billion in exports from India.
The US currently accounts for approximately 18% of India’s total goods exports, 6.22% of its imports, and 10.73% of its overall merchandise trade, highlighting the substantial economic interdependence between the two nations.