NEW DELHI: In a significant step toward deepening economic ties, India and the United States have finalised the Terms of Reference (ToRs) for a proposed bilateral trade agreement (BTA) that covers around 19 chapters, including goods, services, customs facilitation, and investments. Official sources said the negotiations are set to gain momentum with a high-level Indian delegation visiting Washington next week, reported PTI.
The Indian team, led by Rajesh Agrawal , the additional secretary in the department of commerce and India’s chief negotiator, will hold a three-day round of in-person talks starting Wednesday, April 23. Agrawal was appointed as the next commerce secretary on April 18 and will take charge from October 1.
This visit comes close on the heels of a US trade delegation led by Brendan Lynch, assistant US trade representative for South and Central Asia, who was in India from March 25 to 29 for key discussions. It also follows senior official-level talks held in New Delhi in March.
The talks are being fast-tracked to utilise the 90-day tariff pause announced by US President Donald Trump on April 9. On April 15, India’s Commerce Secretary Sunil Barthwal said India is committed to closing negotiations quickly and will follow the path of trade liberalisation with the US.
Negotiations began in March with both sides aiming to conclude the first phase of the pact by fall (September–October) this year. The larger goal is to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion.
The trade pact is expected to involve significant tariff cuts . The US is seeking greater access for products such as electric vehicles, certain industrial goods, wines, dairy, petrochemicals, apples, alfalfa hay, and tree nuts. India, in turn, is eyeing concessions for labour-intensive sectors like textiles, apparel, gems and jewellery, leather goods, chemicals, plastics, shrimp, oilseeds, and horticultural products.
From 2021-22 to 2024-25, the US was India’s largest trading partner. In 2024-25, India had a trade surplus of $41.18 billion in goods with the US, up from $35.32 billion in 2023-24 and $27.7 billion in 2022-23. However, the widening trade gap has drawn concern from Washington.
To address this imbalance and promote domestic manufacturing, the Trump administration announced sweeping tariff, including a 26% levy on Indian goods, on April 2. The move was later suspended until July 9, giving both sides time to negotiate.
India’s top exports to the US in 2024 included:
The Indian team, led by Rajesh Agrawal , the additional secretary in the department of commerce and India’s chief negotiator, will hold a three-day round of in-person talks starting Wednesday, April 23. Agrawal was appointed as the next commerce secretary on April 18 and will take charge from October 1.
This visit comes close on the heels of a US trade delegation led by Brendan Lynch, assistant US trade representative for South and Central Asia, who was in India from March 25 to 29 for key discussions. It also follows senior official-level talks held in New Delhi in March.
The talks are being fast-tracked to utilise the 90-day tariff pause announced by US President Donald Trump on April 9. On April 15, India’s Commerce Secretary Sunil Barthwal said India is committed to closing negotiations quickly and will follow the path of trade liberalisation with the US.
Negotiations began in March with both sides aiming to conclude the first phase of the pact by fall (September–October) this year. The larger goal is to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion.
The trade pact is expected to involve significant tariff cuts . The US is seeking greater access for products such as electric vehicles, certain industrial goods, wines, dairy, petrochemicals, apples, alfalfa hay, and tree nuts. India, in turn, is eyeing concessions for labour-intensive sectors like textiles, apparel, gems and jewellery, leather goods, chemicals, plastics, shrimp, oilseeds, and horticultural products.
From 2021-22 to 2024-25, the US was India’s largest trading partner. In 2024-25, India had a trade surplus of $41.18 billion in goods with the US, up from $35.32 billion in 2023-24 and $27.7 billion in 2022-23. However, the widening trade gap has drawn concern from Washington.
To address this imbalance and promote domestic manufacturing, the Trump administration announced sweeping tariff, including a 26% levy on Indian goods, on April 2. The move was later suspended until July 9, giving both sides time to negotiate.
India’s top exports to the US in 2024 included:
- Drug formulations and biologicals: $8.1 billion
- Telecom instruments: $6.5 billion
- Precious and semi-precious stones: $5.3 billion
- Petroleum products: $4.1 billion
- Gold and jewellery: $3.2 billion
- Cotton garments and accessories: $2.8 billion
- Iron and steel products: $2.7 billion
- Crude oil: $4.5 billion
- Petroleum products: $3.6 billion
- Coal and coke: $3.4 billion
- Polished diamonds: $2.6 billion
- Electrical machinery: $1.4 billion
- Aircraft and parts: $1.3 billion
- Gold: $1.3 billion
You may also like
"No one can challenge President...": BJP leader Dinesh Sharma
Uttarakhand CM Pushkar Singh Dhami invites content creators for Char Dham Yatra during their meeting
The glorious 11-mile walk between 2 UK seaside villages with stunning cliff-top views
ITV The Chase's backstage secrets - from 'faked' shots to strict dress codes
Red Bull star makes history at Saudi GP with controversial record-breaking win
