Union Commerce and Industry Minister Piyush Goyal has said that the first phase of the India-US Bilateral Trade Agreement (BTA) will be implemented only after the United States ensures India receives a competitive advantage over neighboring countries and other regional economies competing for the same export markets.
Speaking on Wednesday, Goyal explained that the initial framework of the agreement has already been finalized. However, its implementation depends on the United States creating trade conditions that allow Indian businesses to compete on more favorable terms than countries in South Asia, the ASEAN region, and other major export rivals. According to the minister, securing this competitive edge remains the central objective of the first phase of the trade pact.
Goyal emphasized that once these conditions are met, the agreement will be ready to take effect. He reiterated that India’s priority is to ensure its exporters receive a level playing field that enables them to strengthen their presence in the American market while remaining competitive against businesses from other countries.
Addressing questions about ongoing trade discussions, the minister referred to the United States’ Section 301 process, noting that India has actively participated in the proceedings. He explained that while tariffs have already been introduced under one investigation, another review remains under consideration. Despite these developments, Goyal expressed confidence that Indian exporters will continue expanding their footprint in the US market as long as they enjoy comparable tariff treatment or maintain a competitive advantage over rival exporters.
When asked about speculation linking potential US tariffs to India’s purchases of Russian oil, Goyal declined to comment, stating that the government does not respond to speculation and prefers to focus only on confirmed developments.
The minister also highlighted India’s broader progress in strengthening global trade partnerships through a series of free trade agreements. He noted that the agreement with Oman has already become operational, while the India-UK Free Trade Agreement officially came into effect on July 15, providing new opportunities for businesses and exporters.
Looking ahead, Goyal said the proposed India-European Union Free Trade Agreement is nearing the completion of its legal review and is expected to be presented before the European Parliament after its summer recess. India anticipates that the agreement could become operational during the first quarter of next year.
Describing the proposed EU pact as potentially transformative, Goyal said it would provide Indian businesses with greater access to a market spanning 27 countries with a combined economy valued at approximately $20 trillion. He added that India’s expanding network of trade agreements is expected to strengthen exports, increase global market access, and support the country’s long-term vision of becoming a developed economy by 2047.
