India-US talks for bilateral trade accord set to resume later this month

PM Narendra Modi with US President Donald Trump (Courtesy: Reuters file photo)

India and the US are set to resume talks on a proposed bilateral trade agreement later this month, with an Indian delegation expected to visit Washington, according to people familiar with the development.

Rajesh Agrawal, Additional Secretary at the Department of Commerce, will lead the Indian team for the in-person talks between the two nations.

Agarwal is set to become the Commerce Secretary in October.

While the first tranche of the bilateral accord may be finalised only by September or October, India is aiming to firm up talks in the next 45 days for a scaled-down version, one of the officials cited above said.

“We are still talking about tariffs. We will try to do something small first, the first tranche of the BTA is also like a complete free trade agreement, so that will take time,” the official added.

India and the US are currently discussing the contours of the trade pact as part of Mission 500, a broader initiative aiming to more than double bilateral trade to $500 billion by 2030.

Last month, the commerce ministry said that India and the US are looking to conclude negotiations for the first tranche of the proposed BTA well before the agreed timeline of the Fall of 2025, after both nations signed the terms of reference for the pact.

On April 29, the ministry said India and the US are betting on opportunities for early mutual wins as both sides inch closer to finalising a multi-sector BTA, with in-person sectoral-level engagements planned from the end of May.

Sectoral expert-level engagements have already taken place virtually.

India has been looking to wrap up negotiations for the trade deal with the US within the period of pause for reciprocal tariffs to safeguard exports from steeper duties.

While the 10 percent baseline tariff has been operational, the country-specific duty, including a 16 percent one on India, is now expected to be implemented in early July.

Separately, Indian steel and aluminium exports also face a steep 25 percent duty levied by the US.

A trade deal between India and the US is significant at a time when US President Donald Trump’s policy on tariffs is expected to upend global trade and commerce.

India ranks 10th among the top nations exporting to the US, at $91 billion in 2024, with Mexico, China and Canada occupying the top three positions. The US is India’s top export destination and the fourth-largest source of imports.