Jaipur: Commerce and Industry Minister Piyush Goyal on Wednesday said talks with the US on the proposed bilateral trade agreement are progressing.
He said that the US team is in New Delhi for the negotiations.
“Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement,” Goyal told reporters here at the Pravasi Rajasthani Divas. He indicated that he may meet the visiting US official team.
A delegation led by Deputy US Trade Representative (USTR) Rick Switzer is in the national capital for two-day trade talks with his Indian counterpart Rajesh Agrawal.
The US’ chief negotiator for the pact, Assistant US Trade Representative for South and Central Asia Brendan Lynch, will hold discussions with India’s chief negotiator and Joint Secretary in the Department of Commerce, Darpan Jain.
The visit is crucial as India and the US are working to finalise the first tranche of the pact. This is the US officials’ second trip since the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market due to the purchase of Russian crude oil. The US officials last visited India on September 16.
On September 22, Goyal also led an official delegation to the US for trade talks. He had also visited Washington in May. The talks are also important as Commerce Secretary Rajesh Agrawal had recently stated that India is hopeful of reaching a framework trade deal this year itself, which should address the tariff issue to the benefit of Indian exporters.
While noting that the Bilateral Trade Agreement (BTA) will take time, Agrawal said that India is engaged in protracted negotiations with the US on a framework trade deal that will address the reciprocal tariff challenge faced by Indian exporters.
India and the US are having two parallel negotiations — one on a framework trade deal to address tariffs and another on a comprehensive trade deal.
In February, leaders of the two countries directed officials to negotiate an agreement. It was planned to conclude the first tranche of the pact by the fall of 2025. So far, six rounds of negotiations have been held. The agreement aims to more than double bilateral trade to USD 500 billion by 2030, from the current USD 191 billion.
The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports).
The US accounts for about 18 per cent of India’s total goods exports, 6.22 per cent of its imports, and 10.73 per cent of its total merchandise trade. According to exporters, the agreement is important as India’s merchandise exports to the US declined for the second consecutive month in October, falling by 8.58 per cent to USD 6.3 billion due to the hefty tariffs imposed by Washington.
