The esteemed Union Minister of Commerce and Industry, Shri Piyush Goyal, will head a high-ranking delegation to Washington on May 16 to expedite discussions on a proposed bilateral trade agreement (BTA) between India and the United States, as reported by The Economic Times. This visit is anticipated to produce initial advancements aimed at establishing a more comprehensive deal by the fall of 2025.
During the four-day trip, Shri Goyal is scheduled to engage in strategic conversations with important US officials, including US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick. The discussions will build upon prior sector-specific talks and will concentrate on areas where both nations can make mutual concessions to enhance bilateral trade.
According to The Economic Times, negotiators are optimistic about utilizing a 90-day period—ending July 9—during which the US has suspended additional tariffs of 26% on Indian goods. This temporary halt, announced in April, was intended to address the escalating trade imbalance between the two countries. However, a base tariff of 10% remains in effect.
India is advocating for lowered duties on various labor-intensive export sectors, such as gems and jewelry, textiles, leather, plastics, chemicals, shrimp, and certain agricultural products. On the other hand, the US is seeking tariff reductions for electric vehicles, wines, industrial products, petrochemicals, dairy, apples, and tree nuts.
Progress has already been made in the negotiations, with both parties finalizing the terms of reference for the BTA, which comprises approximately 19 chapters. These chapters encompass significant areas such as goods, services, rules of origin, customs procedures, and non-tariff barriers. The Economic Times notes that non-tariff challenges, like regulatory obstacles faced by American products in the Indian market, will also be emphasized during the talks.
India’s Chief Negotiator Rajesh Agrawal and his US counterpart Brendan Lynch recently conducted three days of preparatory discussions in Washington last month. Additionally, earlier in March, Shri Goyal met with Greer and Lutnick to lay the groundwork for the meetings in May.
The US has been India’s largest trading partner for the fourth consecutive year, with bilateral trade reaching USD 131.84 billion in 2024-25. The US now represents 18% of India’s total exports and over 10% of its overall merchandise trade. Despite these robust connections, Washington has voiced concerns over the increasing trade deficit. India registered a trade surplus of USD 41.18 billion with the US in the previous fiscal year, an increase from USD 35.32 billion in 2023-24, according to The Economic Times.
The results of Goyal’s visit are expected to establish the framework for a gradual trade agreement that carefully balances strategic interests while paving the way for new avenues of economic collaboration.