India and the United States are “very near” to finalising the first tranche of the ambitious Bilateral Trade Agreement (BTA), a senior government official confirmed on Friday.
Negotiators from both nations are reportedly aligning on most issues, with discussions now focused on finalising the “language of the agreement.”
Timeline of developments
- February 2025: The bilateral trade agreement was formally proposed following directives from leaders of both countries, aiming to boost trade volumes from USD 191 billion to USD 500 billion by 2030.
- March–October 2025: Five rounds of talks were held, including a virtual meeting on Thursday, to iron out remaining issues.
- September 2025: A U.S. delegation led by Assistant Trade Representative Brendan Lynch met Indian officials to intensify efforts toward an early conclusion.
- September 2025: Commerce and Industry Minister Piyush Goyal visited the U.S. for high-level negotiations alongside India’s Chief Negotiator Rajesh Agrawal.
India’s concerns and U.S. tariffs
India has expressed reservations over U.S. demands to open up its agriculture and dairy sectors, which are vital for rural livelihoods.
Meanwhile, the U.S. President Donald Trump imposed a 25% tariff on Indian goods effective August 1, followed by another 25% hike on August 27, citing India’s continued oil imports from Russia. The cumulative 50% tariff added urgency to the ongoing trade discussions.
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