India and the United States are ramping up efforts to seal a landmark bilateral trade agreement, with both nations committing to intensive talks for a swift resolution that could transform their economic ties. The Commerce Ministry announced the decision following the return of a high-level Indian delegation, led by Commerce and Industry Minister Piyush Goyal, from a productive three-day stint in New York ending September 24.

The meetings, described as "constructive" by officials, delved into the potential framework of the deal, covering key sectors and mutual interests. "Both sides exchanged views on possible contours of the deal, and it was decided to continue the engagements with a view to achieving early conclusion of a mutually beneficial Trade Agreement," the ministry stated, signaling optimism despite ongoing hurdles.

Goyal's itinerary included crucial sit-downs with United States Trade Representative Jamieson Greer and US Ambassador-designate to India Sergio Gor, focusing on easing trade barriers. These discussions gained urgency after the US slapped a 25 percent reciprocal tariff—plus an additional 25 percent penalty—on Indian goods linked to New Delhi's purchases of Russian crude oil, pushing total duties to 50 percent. An Indian official revealed that removing this penalty is a top priority for advancing the pact.

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Dates for the next negotiation round remain fluid, but momentum is building. The official highlighted concerns over US President Donald Trump's impending 100 percent tariffs on branded pharmaceuticals starting October 1, which could jolt India's vital exports—Indian firms supplied four in every ten US prescriptions in 2022. "The talks are on track; we're aiming for the Fall deadline in tranches," the source added, underscoring a phased approach.

This New York trip builds on a September 16 meeting in New Delhi between US Chief Negotiator Brendan Lynch and Indian Special Secretary Rajesh Agrawal, which the ministry called "positive" and geared toward an early wrap-up. The backdrop includes the US hiking H-1B visa fees to $100,000, complicating skilled worker flows.

Launched in February under directives from leaders of both countries, the Bilateral Trade Agreement (BTA) targets doubling trade to $500 billion by 2030 from $191 billion currently. Five rounds of talks have unfolded so far, with the first tranche eyed for October-November 2025. Goyal's May Washington visit, where he met US Commerce Secretary Howard Lutnick and Greer, laid early groundwork.

The US solidified its spot as India's top trading partner for the fourth straight year in 2024-25, with bilateral trade hitting $131.84 billion—India exporting $86.5 billion. America absorbs 18 percent of India's goods exports, 6.22 percent of imports, and 10.73 percent of total merchandise trade.

Beyond government huddles, the delegation engaged US business leaders and investors, who voiced strong support for India's booming economy and eagerness to ramp up operations there. These interactions, the ministry noted, elicited "positive responses," reinforcing confidence in deeper collaboration. As tariffs loom, these strides hint at a potential reset in Indo-US commerce, balancing strategic alliances with economic pragmatism.

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