Piyush Goyal: India-US Trade Deal Talks Moving Forward Fast

India–US trade negotiations have entered an important phase as Commerce and Industry Minister Piyush Goyal confirmed that talks on a proposed bilateral trade agreement are “continuously progressing.” Speaking at the Pravasi Rajasthani Divas event, Goyal said that a high-level US delegation is currently in New Delhi for two days of discussions with Indian officials. The ongoing dialogue marks a significant step toward reaching a long-awaited trade pact, which aims to resolve tariff challenges and boost economic cooperation between the two nations.

The American delegation is led by Deputy US Trade Representative (USTR) Rick Switzer, who will meet his Indian counterpart Rajesh Agrawal. In parallel, US chief negotiator Brendan Lynch will hold talks with India’s chief negotiator Darpan Jain. This visit is of particular importance as both sides work to finalise the first tranche of the agreement. The trip marks the second US delegation visit since Washington imposed a 25% tariff and an additional 25% penalty on Indian goods linked to India’s purchase of Russian crude oil—measures that have impacted India’s export competitiveness.

India has remained proactive in its efforts to settle tariff-related challenges, with Piyush Goyal having visited Washington twice this year for negotiations. Commerce Secretary Rajesh Agrawal earlier expressed optimism that a framework trade deal could be sealed within the year, which would serve as an interim step before finalising a comprehensive bilateral trade agreement. According to Agrawal, the immediate priority is to address reciprocal tariff issues that have become a significant concern for Indian exporters, especially amidst a dip in shipments to the US.

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Both countries are simultaneously negotiating two separate agreements—a framework trade deal focused on tariff relief and a broader Bilateral Trade Agreement (BTA), which will take longer to finalise. Leaders from both nations had directed trade officials to conclude the first tranche by fall 2025, and six rounds of negotiations have already been completed. The long-term goal is to more than double bilateral trade to $500 billion by 2030. This ambition comes amid the US continuing as India’s largest trading partner for the fourth straight year, with trade valued at $131.84 billion in 2024–25.

The urgency of the negotiations is heightened by India’s declining exports to the US. Merchandise exports to America dropped for the second consecutive month in October, slipping 8.58% to $6.3 billion. Exporters warn that the current tariff structure is hurting India’s competitiveness and needs immediate correction. A successful agreement could provide tariff relief, restore market access, and create opportunities across key sectors such as technology, manufacturing, and energy.

As discussions continue in New Delhi, both governments appear committed to resolving outstanding issues and strengthening economic ties. With the US accounting for nearly 18% of India’s total goods exports and over 10% of its merchandise trade, the stakes remain high. The latest round of talks represents a significant move toward stabilizing trade relations and achieving a long-term, mutually beneficial partnership between the world’s two largest democracies.

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