Commerce Secretary Rajesh Agrawal has indicated that trade discussions between India and the United States are advancing positively, with substantial convergence on most issues. This suggests that a mutually beneficial trade agreement is on the horizon.
“I believe we are very close,” Agrawal stated, referring to the proposed Bilateral Trade Agreement (BTA) between the two nations. While specific timelines for the negotiations were not disclosed, the sentiment from the Commerce Secretary points towards an imminent resolution.
The initial phase of the BTA was originally slated for completion in the autumn, spanning September through November in the US, as per a joint statement made on February 13.
A government official, speaking anonymously due to the sensitive nature of the talks, confirmed that trade negotiators from both India and the US are in constant communication. Their focus is on addressing non-tariff barriers and finalizing the language for the draft agreement. The official also noted that deliberations are ongoing through virtual channels and that no new obstacles have emerged.
Industry experts observe that the prospects for a trade deal have improved, especially following India’s decision to reduce or halt Russian crude oil purchases in light of US sanctions against Russian entities. The complementary nature of the Indian and US economies, along with their potential for a robust supply chain, makes them natural trade partners.
Meanwhile, Commerce Minister Piyush Goyal reiterated India’s active engagement in bilateral trade discussions with both the European Union and the US. However, he emphasized a measured approach, stating, “We do not do deals in a hurry and we do not do deals with deadlines or with a gun to our head.” Goyal made these remarks at the Berlin Global Dialogue, highlighting that India prioritizes well-considered agreements over rushed timelines.
Agrawal, who is the chief negotiator for the trade deal with the US, recently concluded a productive two-day discussion with American officials in mid-October. This meeting was described as cordial and instrumental in paving the way for constructive bilateral trade talks.
The India-US trade dialogue had faced disruptions previously, particularly after the fifth round of negotiations in late August. At that time, the US imposed punitive tariffs on Indian goods in response to India’s Russian oil purchases, a move that significantly impacted the viability of Indian exports in the US market. New Delhi had labeled these tariffs as unfair and unreasonable, though diplomatic channels have remained open for dispute resolution.