India-US bilateral trade talks gain momentum after Washington meet

New Delhi: India and the US have made significant headway in their negotiations for a bilateral trade agreement, and are working to finalise the first phase of the pact by fall (September-November), the commerce ministry said in a statement on Tuesday.

Officials of India’s Department of Commerce and the Office of the US Trade Representative met in Washington on 23-25 April to build on discussions held in New Delhi in March.

The talks covered a broad range of issues, including tariff and non-tariff barriers, the commerce ministry said. The delegations also explored the possibility of locking in early gains across key sectors, as they seek to build a roadmap for concluding the first tranche of the multi-pronged agreement, it added.

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The meeting marks a significant step towards renewed bilateral momentum after India and the US in February committed to deepening economic ties and strengthening supply chain cooperation. A bilateral trade agreement would also allow New Delhi significant leeway in navigating US President Donald Trump’s proposed tariffs on Indian exports to the US.

The discussions in Washington also set the stage for more detailed sector-specific in-person meetings, expected to begin by the end of May, supplementing ongoing virtual engagements between technical teams, the commerce ministry said.

The trade deal would be the first such agreement India signs with the US under the renewed negotiations, a government official said, requesting anonymity. If sealed, it would mark India’s first major bilateral trade pact with a developed economy in recent years, and could offer a template for future trade partnerships, the official said.

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Countering protectionism

On Monday, US treasury secretary Scott Bessent said several major US trading partners had made “very good” proposals to avoid the imposition of fresh US tariffs, and one of the first deals was likely to be concluded with India.

The agreement, if finalised, could mark the most comprehensive trade pact between the two democracies in over a decade, as both countries seek to counter growing protectionism and build resilient trade relationships amid global uncertainties, said the government official cited above.

While the Indian delegation in Washington was led by chief negotiator Rajesh Agrawal, the American delegation that visited New Delhi in March was led by assistant US Trade Representative for South and Central Asia, Brendan Lynch.

Indian negotiators are particularly focused on securing better market access for textiles and pharmaceuticals, while the US is pressing for lower tariffs on agricultural goods and the easing of certain quality and certification requirements, Mint reported on 8 March.

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While some challenges remain—particularly in sensitive sectors such as digital trade and regulatory standards, the government official described the tone of the talks as “fruitful” and forward-looking.

Bilateral trade in goods between India and the US rose to $131.84 billion in 2024-25, growing 10.13% over the previous year’s $119.7 billion, according to commerce ministry data.

Indian goods exports to the US increased 11.6%, from $77.52 billion in FY24 to $86.51 billion in FY25. Imports from the US rose by a smaller margin of 7.42%, from $42.20 billion in FY24 to $45.33 billion in FY25.