Commerce and Industry Minister Piyush Goyal stated on Thursday that negotiations for a bilateral trade agreement between India and the United States are advancing positively and moving in the right direction, despite recent tariff impositions by Washington. Speaking to reporters on the sidelines of an event in Abu Dhabi, Goyal described the US as a "trusted partner" and emphasised that the discussions represent collaboration rather than friction amid efforts to resolve trade barriers.

The latest round of talks occurred on September 16 in New Delhi, where Assistant US Trade Representative for South and Central Asia Brendan Lynch met with Indian officials for a seven-hour session. The commerce ministry described the discussions as constructive, with both sides agreeing to accelerate efforts toward an early, mutually beneficial conclusion to the pact. This marks the first high-level US visit since the US doubled tariffs on Indian goods to 50%—a base 25% levy plus an additional 25% penalty—effective August 27, in response to India's purchases of discounted Russian crude oil.

Initiated in March 2025 following directives from Prime Minister Narendra Modi and US President Donald Trump during their February summit, the Bilateral Trade Agreement (BTA) aims to boost bilateral trade to $500 billion by 2030. Five rounds of negotiations have been completed, with the sixth originally scheduled for late August but postponed due to the tariff escalation. Goyal expressed optimism that the first tranche of the deal could be finalised by November 2025, aligning with the leaders' timeline, while India maintains red lines on opening its agriculture and dairy sectors to protect domestic interests.

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The talks occur against a backdrop of geopolitical tensions, including US concerns over India's strategic autonomy in energy imports from Russia. Despite these challenges, Goyal highlighted the natural partnership between the two nations, underscoring shared goals in reducing high tariffs and enhancing foreign direct investment, which has already reached $76.26 billion from the US since April 2000. As discussions intensify, both countries seek to navigate the hurdles for a balanced agreement that fosters economic growth.

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