Commerce and Industry Minister Piyush Goyal declared that negotiations for a bilateral trade agreement (BTA) with the United States are advancing swiftly, with the next round scheduled for August in India. The fifth round of talks concluded last week in Washington, targeting the first phase of the agreement by fall (September-October), with an ambitious goal to more than double bilateral trade from USD 191 billion to USD 500 billion by 2030.

Goyal also revealed that negotiations for a free trade agreement (FTA) with Oman are nearly finalized, marking significant progress in India’s trade diplomacy. Unlike the previous UPA government, the Modi administration has secured FTAs with developed nations like Mauritius, UAE, Australia, EFTA, and the UK, with ongoing discussions with New Zealand, Chile, and Peru.

India is pushing for duty concessions on labor-intensive sectors like textiles, gems and jewelry, leather, garments, and select agricultural products, while resisting U.S. demands for concessions on dairy, agricultural goods, and genetically modified crops.

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The talks are critical as they address U.S. tariffs, including a 26% reciprocal tariff set to take effect post-August 1, 2025, following a 90-day suspension announced by President Donald Trump on April 2. India seeks relief from high U.S. tariffs on steel (50%), aluminum (50%), and autos (25%), while reserving the right to impose retaliatory duties under WTO norms. An interim deal before August 1 is under consideration, with both sides aiming for a “win-win” agreement that prioritizes mutual benefits and national interests.

Goyal emphasized that India’s FTA negotiations are driven by a commitment to expanding trade in goods and services, fostering trust with developed nations, and boosting foreign direct investment. The rapid pace of talks reflects India’s strategic push to strengthen economic ties globally, with the US remaining India’s largest trading partner, recording a trade surplus of USD 12.65 billion in the April-June 2025 quarter.

As negotiations progress, India’s cautious stance on sensitive sectors like agriculture, coupled with its focus on competitive industries, underscores its “India First” approach, ensuring equitable outcomes in these high-stakes trade discussions.

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