India and U.S. are seeing progress in trade deal talks

Negotiations for a new bilateral trade agreement between India and the United States are making significant headway, according to a senior government official. Commerce Secretary Sunil Barthwal announced on Thursday that an Indian delegation is preparing to visit Washington to accelerate the talks.

The delegation, led by Commerce and Industry Minister Piyush Goyal, is scheduled to hold discussions with U.S. officials from May 17 to 20. Key meetings include those with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick. Meanwhile, India's chief negotiator, Rajesh Agrawal, will engage with his U.S. counterpart from May 19 to 22.

These discussions are part of broader efforts by both nations to establish an interim trade agreement that promises "early mutual wins," in anticipation of finalizing the first phase of the comprehensive trade deal by the fall of this year.

"The negotiations are progressing very well, and our team is preparing to discuss further details with U.S. counterparts," Barthwal told reporters.

In a related development, U.S. President Donald Trump, speaking in Doha, claimed that India has agreed to remove tariffs on several American goods. "India, which has one of the highest tariffs, has offered us a deal with no tariffs. This marks a significant change," Trump declared.

External Affairs Minister S. Jaishankar, addressing reporters on the sidelines of an event, cautioned that trade negotiations are intricate. "These are complicated negotiations, and nothing is decided until everything is. Any trade deal must be mutually beneficial," he emphasized.

Officials are aiming to finalize this phase of negotiations by September-October, with a longer-term goal to double bilateral trade to USD 500 billion by 2030. "We are committed to enhancing trade with the U.S. The Bilateral Trade Agreement (BTA) will further strengthen this relationship," an official stated.

Key topics in the upcoming discussions will include market access, rules of origin, and non-tariff barriers. The negotiators hope to capitalize on a 90-day tariff pause window to push the talks forward. The U.S. suspended additional 26 percent tariffs on India until July 9, while maintaining baseline tariffs of 10 percent.

Previously, India's Chief Negotiator Rajesh Agrawal held three-day discussions in Washington with Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch. Prior to this, Goyal met with Greer and Lutnick for bilateral talks in March.

As the U.S. continues to be India's largest trading partner—with bilateral trade reaching USD 131.84 billion in 2024-25—these negotiations are crucial. The U.S. constitutes around 18 percent of India's goods exports and 6.22 percent of imports, underscoring the importance of this evolving trade relationship.