A delegation of US officials is expected to visit India next month for trade negotiations, with both countries aiming to finalise an interim trade agreement by June 25, according to sources familiar with the matter.
“Talks are progressing well. Everything is on track,” the sources said.
India’s chief negotiator, Rajesh Agrawal, special secretary in the Department of Commerce, wrapped up a four-day visit to Washington last week, during which he held discussions with his American counterpart regarding the proposed agreement.
Commerce and Industry Minister Piyush Goyal was also in Washington to lend momentum to the talks. He met US Commerce Secretary Howard Lutnick twice during his visit to reinforce bilateral engagement.
The two sides are working towards an interim agreement as a precursor to the first phase of a broader bilateral trade agreement (BTA). Currently, the US’s 26 percent reciprocal tariff on Indian goods, imposed on April 2, has been suspended until July 9. However, Indian exports still face a 10 percent baseline US tariff.
As part of the interim deal, India is pressing for complete exemption from the 26 percent reciprocal duty on its exports.
Both governments have reportedly set a target to conclude the first tranche of the BTA by September–October.
The United States remained India’s largest trading partner for the fourth consecutive year in FY25, with total bilateral trade reaching $131.84 billion. The US accounted for nearly 18 percent of India’s goods exports, 6.22 percent of imports, and 10.73 percent of overall merchandise trade during the year.
India recorded a trade surplus of $41.18 billion with the US in 2024–25—up from $35.32 billion in 2023–24. Washington has expressed concern over the growing trade imbalance.
Both countries are aiming to more than double bilateral trade to $500 billion by 2030.
According to a report by India’s finance ministry, a successful bilateral trade agreement with the US could turn current headwinds into tailwinds, opening up new market access opportunities and driving export growth.
India is seeking duty concessions for labour-intensive sectors such as textiles, gems and jewellery, leather, garments, plastics, chemicals, shrimp, oilseeds, grapes, and bananas. The US, on its part, is pushing for tariff reductions in industrial goods, electric vehicles, wines, petrochemicals, dairy, and agricultural products including apples, tree nuts, and genetically modified (GM) crops.
While India continues to resist GM imports due to regulatory hurdles, New Delhi is reportedly open to importing non-GM items such as alfalfa hay, a type of cattle feed.
(By arrangement with livemint.com)