India and the US have agreed on terms of reference for negotiating a proposed Bilateral Trade Agreement (BTA), as announced by the US Trade Representative (USTR)
The USTR Jamieson Greer indicated that these discussions aim to establish reciprocity and create new market opportunities whilst addressing practices detrimental to US workers.“I am pleased to confirm that USTR and India’s Ministry of Commerce and Industry have finalized the Terms of Reference to lay down a roadmap for the negotiations onreciprocal trade,” he said in a statement.
Mentioning the progress of the talks, he added, “There is a serious lack of reciprocity in the trade relationship with India. These ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers. India’s constructive engagement so far has been welcomed and I look forward to creating new opportunities for workers, farmers, and entrepreneurs in both countries.“
Greer further expressed appreciation for the collaborative declaration issued by US Vice President JD Vance and Prime Minister Narendra Modi.
During recent talks between PM Modi and Vance, both nations reported substantial progress towards a mutually advantageous trade agreement. Vance’s visit marks the first US vice-presidential visit to India since Joe Biden’s 2013 trip to New Delhi.
“This announcement elevates significant work done since February 13, 2025, when Prime Minister Modi visited President Trump and the two agreed to launch negotiations for a Bilateral Trade Agreement between the United States and India,” stated the Office of the United States Trade Representative in its press release.
The US faces considerable trade barriers with India, resulting in a USD 45.7 billion goods trade deficit in 2024, increasing by 5.1 per cent from 2023. “The United States welcomed the tariff reductions India implemented during the Prime Minister’s meeting with President Trump in February and its willingness to further reduce tariffs on US products as part of the BTA.,” it further stated while giving details of the trade talks between PM Modi and Vance.
“The ToR (Terms of Reference) announcement with India is a critical step forward in negotiations with India to achieve reciprocal trade with one of our most strategic partners and deliver results to the American People,” the statement further added.