Confident of concluding first phase of India-US BTA soon, says minister Piyush Goyal

India and the U.S. Near Completion of Bilateral Trade Agreement Phase

Confident of concluding first phase of India – India and the United States are on the verge of finalizing the initial phase of their bilateral trade agreement (BTA), according to Commerce and Industry Minister Piyush Goyal. The minister stated that only a few technical details remain to be resolved before the agreement is officially signed. This comes as a U.S. delegation, led by Assistant Trade Representative Brendan Lynch, is set to visit India from June 1 to June 4 to continue negotiations.

“Mostly everything is finalised. As you know, US Ambassador Sergio Gor said that 99 per cent of the things have been finalized. Discussions are going on about small issues, commas and full stops,” he said, noting that discussions build on a framework announced on 3 February.

The framework, which was unveiled on February 3, serves as the foundation for the broader trade talks. It outlines the commitment to resolving remaining issues and moving toward a comprehensive agreement. The U.S. Embassy reaffirmed this framework in a statement, highlighting the importance of the negotiations.

On February 7, India and the U.S. released a joint statement that solidified the structure of the first phase of the BTA. Both nations are now working to transform this framework into a legally binding document. According to the statement, the U.S. plans to reduce tariffs on Indian goods to 18% from their current 50% rate. Additionally, tariffs on Indian products tied to Russian oil purchases will be lowered from 25% to 18% under the proposed pact.

Minister Goyal emphasized that the focus of the current discussions is on integrating recent legal changes in the U.S. into the agreement. “While finalizing, how will the legal changes that have taken place in the U.S. be reflected in the final agreement, and what kind of changes will be made accordingly,” he questioned. “After finalizing that, I am fully confident that, with the U.S., we will conclude the first tranche of the BTA as soon as possible, sign it, and begin further discussions on how to achieve a more comprehensive trade deal,” he added.

During the latest round of talks, U.S. Ambassador Sergio Gor highlighted the progress made. “Our current interim trade agreement is on the table for us to finalise, and that will unlock prosperity for both of our countries,” the ambassador stated. “Just last week, India had sent a team to Washington DC to finalise the last one per cent of that trade deal,” he continued. According to recent reports, the U.S. is now one of India’s largest trading partners, with India ranking among the top trading partners of the U.S.

Over the past two decades, bilateral trade between the two nations has surged from $20 billion to $220 billion. This growth is increasingly driven by sectors such as digital trade, advanced manufacturing, and emerging technologies. The TRUST Initiative, launched under the U.S.-India Trade and Technology Council, aims to strengthen this economic relationship through strategic collaboration.

Reiterating the commitment to the BTA, the framework underscores the U.S. government’s goal of achieving a sustainable and enduring trade agreement. As Secretary of State Marco Rubio noted during his visit to India, the U.S. is seeking a pact that benefits both economies in the long term. The ongoing discussions are expected to address various aspects, including the potential inclusion of Section 301 tariffs in the final agreement.

According to multiple media reports, tariffs imposed under Section 301 are expected to be part of the discussions during the three-day visit by the U.S. chief negotiator. US Trade Representative Jamieson Greer is also anticipated to visit India later for further talks, once there is greater clarity on the outcome of a Section 301 investigation or a commitment that India will not be subject to action under the provision.

The U.S. embassy said in a statement on Monday that the delegation led by Lynch will visit India from June 1 to June 4 to continue discussions toward finalizing the agreement. The embassy spokesperson highlighted that the U.S. is seeking a trade deal that will be enduring, beneficial, and sustainable for both countries, as stated by Rubio during his recent visit.

India’s economic growth in partnership with the U.S. has been a key focus of recent diplomatic efforts. The BTA is seen as a critical step in deepening trade ties and addressing longstanding challenges. With the finalization of the first phase, both nations aim to establish a stronger economic framework that reflects their mutual interests and aspirations for the future.

Minister Goyal’s confidence in the agreement’s completion is echoed by U.S. officials, who are also optimistic about the progress. The next phase of talks will likely address remaining technicalities, ensuring that the agreement aligns with the latest developments in U.S. trade policy. This phase is expected to pave the way for a broader pact that could further enhance economic cooperation between the two countries.