New Delhi: India and the United States are edging closer to finalising the first phase of their proposed Bilateral Trade Agreement (BTA), with discussions on reciprocal tariff adjustments almost wrapped up, Commerce Secretary Rajesh Agrawal announced on Monday while releasing the country’s October trade figures.
Agrawal confirmed that both sides have been holding virtual negotiations for several months, working through a two-part framework. One segment of the pact involves deeper, long-term trade commitments expected to require extensive consultations, while the second, a more immediate package addressing mutual tariff concerns, is approaching conclusion.
“The element concerning reciprocal tariffs is progressing well and should be completed sooner rather than later,” Agrawal said, adding that the government is avoiding firm timelines given the complexity of the arrangement.
The BTA was formally proposed in February this year following instructions from the leadership in New Delhi and Washington. The strategic objective is ambitious: to boost bilateral trade from the current USD 191 billion to USD 500 billion by 2030. The first public announcement of the talks was made during Prime Minister Narendra Modi’s state visit to the US earlier this year.
The negotiations have continued even as the US has hardened its tariff stance. In August, President Donald Trump imposed a 25% duty on a range of Indian goods, followed shortly by an additional 25% increase. The move was justified by Washington as a response to India’s sustained energy imports from Russia. The US has been applying similar reciprocal tariffs to several nations with which it records a trade deficit.
