India is actively engaged in discussions for new trade agreements with key global partners including the United States, the European Union, and Oman. This comes as the nation continues to expand its free trade network, having already successfully implemented pacts with developed economies like Australia, the UAE, and the EFTA bloc, in addition to a recently signed agreement with the United Kingdom.
Commerce and Industry Minister Piyush Goyal highlighted that India has finalized several free trade agreements with developed countries over the past three years. He emphasized that these ongoing dialogues—with the U.S., EU, Chile, Peru, New Zealand, and Oman—underscore India’s position as a favored destination for both investment and bilateral trade.
Recently, during discussions with Brazil, Minister Goyal explored opportunities to broaden their existing preferential trade agreement, aiming for greater market penetration in South America in the future.
Currently, an Indian official delegation is in Washington for trade talks with their American counterparts. These discussions follow a directive issued in February by leaders of India and the U.S. to negotiate a Bilateral Trade Agreement (BTA), with an ambitious goal to conclude the first phase of the pact by fall 2025. Five rounds of negotiations have already taken place, and Minister Goyal himself led a delegation to New York for trade discussions last month.
These negotiations are particularly crucial given the strains in bilateral relations. Previously, the U.S. administration imposed significant tariffs on Indian goods, including a 25% additional import duty on Russian crude oil purchases, which India deemed “unfair, unjustified, and unreasonable.” Additionally, India’s industry has expressed concerns regarding new U.S. policies on H1B visas. However, recent phone conversations between Prime Minister Narendra Modi and U.S. President Donald Trump have fostered optimism for a positive resolution in the ongoing trade deal negotiations.
Following a brief hiatus, Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch met with Indian officials in New Delhi, where both parties committed to working towards an early and mutually beneficial agreement.
The proposed trade pact aims to more than double bilateral trade between India and the U.S. to an impressive $500 billion by 2030, from its current level of approximately ₹191 billion. For the fourth consecutive year in 2024-25, the U.S. remained India’s largest trading partner, with bilateral trade reaching $131.84 billion, comprising $86.5 billion in Indian exports. Overall, the U.S. accounts for about 18% of India’s total goods exports, 6.22% of imports, and 10.73% of the country’s total merchandise trade.
However, India’s merchandise exports to the U.S. saw an 11.93% decline to $5.46 billion in September, attributed to the tariffs imposed by Washington. Conversely, imports from the U.S. increased by 11.78% to $3.98 billion during the same month, according to data from the Commerce Ministry.