Indian and US officials are set to begin formal talks on a proposed bilateral trade agreement (BTA) in Washington on Wednesday (US time), aiming to resolve outstanding issues and advance negotiations, as reported by news agency PTI.
The three-day talks mark the first face-to-face engagement under the agreed terms of reference, which span 19 chapters, including tariffs, non-tariff barriers, and customs facilitation.
The US Trade Representative’s office stated that the agreement aims to create opportunities for workers, farmers, and entrepreneurs in both countries, while expanding market access for American products. The US is seeking enhanced access, lower tariffs, and commitments to ensure long-term benefits.
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A key concern for Washington is the growing trade deficit with India, which reached USD 45.7 billion in 2024. The US hopes the BTA will help narrow this gap.
The talks are led on the Indian side by Additional Secretary Rajesh Agrawal from the department of commerce. The negotiations follow an earlier announcement by Commerce Secretary Sunil Barthwal, who said India is keen to accelerate discussions. Talks on the agreement first began in March, with both countries targeting completion of the first phase by fall 2025.
The BTA aims to significantly boost bilateral trade—from the current USD 191 billion to USD 500 billion by 2030. Under the deal, both sides are expected to reduce or eliminate customs duties on goods and ease regulations to facilitate services and investment.
The US is seeking tariff concessions in sectors such as industrial goods, automobiles (including electric vehicles), wines, petrochemicals, dairy, and agricultural products like apples and tree nuts. India is expected to push for reductions in duties on labour-intensive exports including textiles, apparel, leather, gems and jewellery, plastics, chemicals, and seafood.
The US has remained India’s largest trading partner since 2021-22. In FY2024-25, India’s exports to the US rose 11.6% to USD 86.51 billion, while imports increased 7.44% to USD 45.33 billion. India maintained a trade surplus of USD 41.18 billion with the US, which accounted for nearly 20% of India’s total exports and over 6% of its imports.