NEW DELHI: India and US have agreed to kickstart sectoral discussions under the proposed Bilateral Trade Agreement (BTA) in the coming weeks, setting the stage for deeper economic ties. The decision follows four days of negotiations between senior officials from both sides, which concluded on Saturday.
“Sectoral expert-level engagements under the BTA will commence virtually in the coming weeks, paving the way for an early in-person negotiating round,” the commerce ministry said. The discussions aim to finalise the first tranche of the agreement by fall 2025, with a broader objective of fostering growth, ensuring fairness, strengthening national security, and boosting job creation.
During these talks, India and US explored ways to enhance market access, reduce tariff and non-tariff barriers, and strengthen supply chain integration. A US delegation led by Assistant Trade Representative for South and Central Asia Brendan Lynch participated in the discussions, following Indian Commerce Minister Piyush Goyal’s visit to Washington in early March.
The ministry described the negotiations as a step forward in expanding bilateral trade and investment, unlocking new business opportunities, and reinforcing economic ties. Both nations reaffirmed their commitment to ensuring the BTA aligns with their shared vision of prosperity, resilience, and mutual benefit.
Tariff talks amid trade tensions
The negotiations gain significance as US President Donald Trump recently reiterated his stance on India’s high tariffs, calling them “brutal” while acknowledging Prime Minister Narendra Modi as a “very smart man” and a “great friend.” Trump has announced plans to impose reciprocal tariffs on key trading partners, including India, starting April 2.
Both nations have set an ambitious target to more than double bilateral trade to $500 billion by 2030, up from the current $190 billion. While the US seeks duty concessions on industrial goods, automobiles, wines, petrochemicals, dairy, and agricultural products like apples and nuts, India is expected to push for lower tariffs on labour-intensive sectors such as textiles.
India’s caution on agriculture
Despite US pressure to open up its agriculture sector, experts believe India will likely exclude dairy and agriculture from trade negotiations due to political sensitivities. Indian exporters, meanwhile, have urged the government to shield them from reciprocal US tariffs, as the American market remains crucial for their growth.
US agricultural exports to India stood at $1.6 billion in 2024, with almonds ($868 million), pistachios ($121 million), apples ($21 million), and ethanol ($266 million) leading the list. In 2023, India removed retaliatory tariffs on several US products, including chickpeas, lentils, and apples, which were imposed in response to Washington’s steel and aluminium tariff hikes in 2019.
India-US trade snapshot
In 2024, India’s top exports to the US included pharmaceuticals ($8.1 billion), telecom instruments ($6.5 billion), precious stones ($5.3 billion), petroleum products ($4.1 billion), and jewelry ($3.2 billion). On the import side, key items included crude oil ($4.5 billion), petroleum products ($3.6 billion), coal and coke ($3.4 billion), and gold ($1.3 billion).
With a trade surplus of $35.31 billion, the US remained India’s largest trading partner in 2023-24, recording $119.71 billion in bilateral trade. The US has also been a key investor in India, with foreign direct investments (FDI) totaling $67.8 billion between April 2000 and September 2024.
As India and the US gear up for further negotiations, the upcoming sectoral talks will be crucial in shaping the contours of the much-anticipated BTA, potentially unlocking a new era of economic collaboration.
India and US have agreed to kickstart sectoral discussions under the proposed Bilateral Trade Agreement (BTA) in the coming weeks
