Bilateral trade talks gain momentum as India, US eye early pact

In a bid to boost bilateral trade ties, India and the United States have agreed to continue talks for the early conclusion of a mutually beneficial trade agreement, the Commerce Ministry announced on Friday. The decision follows three days of high-level discussions in New York, led by Commerce and Industry Minister Piyush Goyal.

Constructive Dialogue, Key Issues on the Table

According to the ministry, both sides held constructive meetings and exchanged views on the contours of the proposed Bilateral Trade Agreement (BTA). “It was decided to continue engagements with a view to achieving early conclusion of the deal,” the statement said.

Goyal met USTR Jamieson Greer and US Ambassador-designate Sergio Gor, discussing tariff-related challenges and investment opportunities. Notably, talks took place against the backdrop of US-imposed tariffs totalling 50% on Indian goods, including a 25% penalty linked to Russian crude imports.

India has pressed for the removal of the penalty, terming it crucial for finalising the agreement.

Trade Pact Targets $500 Billion by 2030

The proposed pact, expected to roll out in tranches, aims to double bilateral trade to USD 500 billion by 2030 from USD 191 billion at present. Officials are working toward a Fall 2025 deadline for the first tranche.

However, concerns persist over US President Donald Trump’s decision to impose 100% import tariffs on branded pharmaceutical drugs from October 1, a move that could hit India’s pharma exports, which currently supply 40% of US prescriptions.

Business Confidence in India’s Growth

Beyond government meetings, the Indian delegation also engaged with US-based investors, who expressed confidence in India’s growth story and interest in expanding their footprint.