NEW DELHI: As Commerce Minister Piyush Goyal and US Secretary of Commerce Howard Lutnick initiated talks in Washington to fast-track a bilateral US-India trade deal, the US-India Business Council (USIBC) on Tuesday emphasised the urgent need to dismantle non-tariff barriers and bureaucratic hurdles that restrict market access.
USIBC President Atul Keshap called the long-pending US-India trade pact a potential game-changer, capable of significantly boosting the GDP of both nations by ensuring full and open market access.
Goyal, in his first meeting with Lutnick, also prepared for discussions with newly appointed US Trade Representative (USTR) Jamieson Greer ahead of the US administration’s planned reciprocal tariffs set to take effect next month.
Last month, Prime Minister Narendra Modi and US President Donald Trump agreed to finalize a mutually beneficial bilateral trade agreement (BTA) within the next seven to eight months. The negotiations come at a time when the Trump administration is imposing new tariffs to counter what it sees as unfair trade practices.
Level playing field stressed
“For years, US and Indian businesses have operated without a formal investment or trade framework. India accounts for just 2.5 percent of America’s trade volumes—a figure that should rise significantly. Both sides must now focus on ensuring a level playing field, swift dispute resolution, and predictable tax and regulatory policies to drive investment, growth, and job creation,” Keshap said.
Despite optimism surrounding the talks, a Delhi-based think tank has cautioned India against rushing into a comprehensive free trade agreement (FTA) with the US, citing Washington’s history of disregarding negotiated trade pacts.
“NAFTA, the trade agreement between the US, Canada, and Mexico, had been in force since 1994, but Trump scrapped it in favor of the USMCA in 2018-19, claiming NAFTA was outdated and detrimental to American workers. Now, he has imposed 25 percent tariffs on Canada and Mexico, violating the very agreement he championed,” said the Global Trade Research Initiative (GTRI).
