India’s negotiations with the United States on the Bilateral Trade Agreement (BTA) have picked up pace, with the i
nitial chapter of the deal—focused on reciprocal tariffs—moving steadily toward finalization. While sharing India’s October trade data, Commerce Secretary Rajesh Agrawal said the opening phase of the agreement is “near closure,” reflecting meaningful progress after months of virtual engagements between both sides.
Agrawal outlined that the BTA has been divided into two broad sections. One component involves more intricate and long-term policy discussions, likely requiring extended dialogue. The other segment, which centers on tariff-related decisions, is being fast-tracked by both nations due to mutual interest in resolving duty issues quickly. He emphasized that although expectations are high, fixed timelines would be impractical given the scale and sensitivity of the agreement.
The larger trade pact, officially pushed forward in February following joint directions from New Delhi and Washington, seeks to significantly deepen economic cooperation. Both countries aim to raise bilateral trade from the current $191 billion to approximately $500 billion by 2030. The roadmap for negotiations was originally announced during Prime Minister Narendra Modi’s visit to Washington earlier this year.
Talks Continue Despite Tariff Hikes
The ongoing dialogue has remained active despite recent escalations in US tariffs on Indian goods. President Donald Trump imposed a 25 percent tariff on Indian imports beginning August 1, followed shortly by another 25 percent increase. These measures were justified by Washington on the grounds of India’s continued purchases of Russian crude oil. The US has been imposing reciprocal tariffs on several nations with which it registers trade deficits.
Even with these developments, Indian officials affirmed last week that negotiations on the BTA have not lost momentum. They stressed that the agreement is being drafted with substantial detail while ensuring compatibility with WTO rules, particularly for sensitive sectors. Some authorities have suggested that another formal round of discussions may not be necessary.
Agrawal also confirmed that talks regarding a potential India–US LPG supply arrangement—an idea under discussion for years—are advancing separately. He clarified that any LPG procurement would not be linked to the BTA but could positively contribute to balancing overall trade figures.
