India, US look to wrap up talks before fall as BTA contours finalised

"Merchandise exports have reached $437.42 billion in FY25, the growth is in positive zone," the commerce secretary said.

India and the US are looking to conclude negotiations for the first tranche of the proposed Bilateral Trade Agreement (BTA) well before the agreed timeline of Fall of 2025, after both nations signed the terms of reference for the pact, Commerce Ministry said on April 15.

"India and US BTA term of reference have been finalised when the US team was here...the first tranche negotiations will start virtually on the various chapters within this week, and the talks in the physical mode may start in the end of the May”, Additional Secretary of the Commerce Ministry, Rajesh Agarwal said.

India and the US are discussing the contours of a bilateral trade agreement (BTA), which is part of a new goal - Mission 500 - aiming to more than double bilateral trade between the two countries to $500 billion by 2030.

Both nations are looking to agree on the first draft of a mutually beneficial, multi-sector BTA by this autumn. On the timeline for the negotiations, Commerce Secretary Barthwal said it will be good for both India and the US to wrap up the trade deal before Fall of 2025.

“When we said we want to do a first tranche of BTA with US by fall, that doesn't mean we can't do it before fall. If we end up doing the BTA before fall then it will be good for both India and US," Barthwal said.

One government official said India is looking to close talks for the first tranche of the BTA with US as soon as possible, keeping in mind the 90-day tariff pause announced by President Trump on all countries, excluding China.

"We are on the path of BTA between India, US, on tariffs and non-tariff barriers, if there is reduction agreed upon by both nations it will lead to higher trade for US and India. The 90-day pause is not country specific, it is for everyone. We are negotiating with US and we will try and close talks for the BTA as soon as possible," the official added.

After imposing a 26 percent reciprocal tariff on India on April 2, US President Trump paused the implementation of steeper duties for several nations, including India, on April 9.

"There are both concerns and opportunities in terms of the tariff situation. But since India has already taken the path of trade liberalisation with US and negotiations are on for a BTA. And if we follow that path then I think not only India, US trade will grow and will also open up a lot of opportunities for both nations," Barthwal said.

Sounding confident of an agreement, Commerce Minister Piyush Goyal had recently said that India offers US a compelling case for a bilateral trade deal, given the outlook on growth and the demographics.

"We are among the first countries to engage with the US. We are already in dialogue with the US to come to a BTA, which will be in the mutual interest of expanding business between India and the US,” Goyal had said, adding the two sides complement each other and can work together for global good.