India and the United States have intensified efforts to finalize a mutually beneficial Bilateral Trade Agreement (BTA) amid a series of trade tensions. Union Minister for Commerce and Industry Piyush Goyal led a delegation to the US between September 22 and 24, holding discussions with US officials and business leaders to promote trade and investment while addressing ongoing tariff disputes.
The delegation met with top US representatives, including Ambassador Jamieson Greer, the United States Trade Representative, and Sergio Gor, the US Ambassador-designate to India, exchanging views on the contours of the potential trade deal. Government sources confirmed that both sides agreed to continue engagements to accelerate the agreement’s early conclusion. Business leaders expressed confidence in India’s growth prospects and indicated plans to expand operations in the country.
This development follows a series of US trade measures affecting India. In July, the Trump administration imposed 25% tariffs on Indian imports, later increased to 50% due to continued imports of Russian oil. More recently, a $100,000 fee was announced on new H1-B visa petitions, and a 100% tariff on branded and patented pharmaceutical products is set to take effect from October 1, 2025. India, which hosts the largest number of US FDA-approved pharma plants outside the US, could be significantly impacted. Formulations and biologics account for nearly 79% of India’s pharma exports.
In FY25 (April–December), India’s pharmaceutical exports reached $21.7 billion, with the US, UK, South Africa, the Netherlands, and France as leading markets. Total global pharma exports crossed $30 billion in 2024–25. These exports are critical for both countries: Indian generics supply the US market with affordable medicines, while providing significant revenue to Indian pharma companies.
The ongoing negotiations aim to address sensitive areas such as agriculture and dairy, which are vital for India’s livelihoods. Both nations are committed to concluding a fair and balanced agreement, ensuring trade stability and boosting investment, despite the challenges posed by tariffs and regulatory measures.
