Negotiations for a bilateral trade agreement (BTA) between India and the United States, initiated in March 2025, are progressing in a positive and constructive atmosphere, according to Union Commerce and Industry Minister Piyush Goyal. Speaking at a press conference in Patna, Goyal expressed satisfaction with the progress, noting that both nations are committed to concluding the first phase of the agreement by November 2025, as directed by Prime Minister Narendra Modi and US President Donald Trump in February this year.
Goyal highlighted the ongoing dialogue, stating, “Discussions have been advancing with seriousness since March, and both countries are pleased with the progress.” This follows his remarks on Wednesday, where he confirmed India’s active engagement with the US to finalize the trade pact. The optimism was echoed by President Trump, who, in a Tuesday post on Truth Social, expressed confidence in a successful outcome, stating, “India and the United States are continuing negotiations to address trade barriers between our two nations.” Trump also looked forward to discussions with his “very good friend,” Prime Minister Modi, in the coming weeks.
Prime Minister Modi responded on X, emphasizing the strong partnership between the two nations: “India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.” The agreement aims to more than double bilateral trade in goods and services from USD 191 billion to USD 500 billion by 2030, addressing trade barriers and fostering economic growth.
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Five rounds of negotiations have been completed since March, though the sixth round, initially scheduled for August, was postponed following the US imposition of a 50% import duty on Indian goods, including an additional 25% tariff linked to India’s purchase of Russian crude oil. This has impacted labor-intensive sectors such as shrimp, textiles, leather, and footwear. India has labeled these tariffs as “unfair, unjustified, and unreasonable,” and no new dates have been set for the next round of talks.
Key challenges include US demands for greater market access in India’s agriculture and dairy sectors, which India has resisted to protect the livelihoods of its small and marginal farmers. Goyal reiterated India’s firm stance, stating that the interests of farmers and cattle rearers will not be compromised.
The United States remains India’s largest trading partner, with bilateral trade in goods reaching USD 131.8 billion in 2024-25 (USD 86.5 billion in exports and USD 45.3 billion in imports). Additionally, the US is the third-largest investor in India, contributing USD 76.26 billion in foreign direct investment (FDI) between April 2000 and June 2025, accounting for 10% of India’s total FDI during this period.
In a separate remark, Goyal addressed ongoing protests in Nepal, stating that the Indian government is closely monitoring the situation and working to repatriate Indian citizens stranded there. He added that the Indian mission in Nepal is prepared to provide full support, expressing hope for a swift restoration of normalcy.
The advancing India-US trade talks signal a strengthening economic partnership, with both nations poised to overcome challenges and unlock significant opportunities for mutual growth.
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