India expects to conclude the first tranche of its bilateral trade agreement (BTA) with the United States by the end of 2025, as “most issues have already been resolved,” Commerce Secretary Rajesh Agrawal said on Friday. Speaking at FICCI’s 98th AGM, he emphasized that New Delhi remains committed to completing the initial phase of the pact within this calendar year.
The India–US discussions span two tracks — a broader trade pact and a tariff framework addressing reciprocal duties imposed by Washington. The first tranche will focus on tariff-related matters, including levies on standard goods and petroleum products. Agrawal noted that once higher US tariffs are withdrawn, Indian exporters stand to gain, adding that frequent virtual negotiations have resulted in “considerable progress.”
The agreement comes at a time of global economic uncertainty and rising protectionism. For India, the pact could stabilize exports to its largest trading partner and improve competitiveness. For the US, reduced tariffs could enhance supply-chain linkages and boost bilateral trade. Experts believe the deal, aligned with WTO norms, could significantly increase trade volumes over time.
Despite the momentum, several issues remain “non-negotiable” for India. Both sides still need to reach a mutually acceptable position on sensitive sectors impacted by earlier tariff hikes. As talks advance, the focus will remain on whether India and the US can turn negotiation progress into a formal agreement before the year ends.
