India and the United States held a week-long round of discussions focused on key areas such as market access, digital trade, and customs facilitation as part of ongoing negotiations for a Bilateral Trade Agreement (BTA).
According to the official, both sides agreed to continue the dialogue with the goal of concluding the first phase of the BTA swiftly. India and the US are working toward finalizing the initial tranche of a comprehensive, multi-sector trade pact by fall 2025 (September-October), aiming for a mutually beneficial agreement.
To further this objective, a US delegation led by the Additional US Trade Representative visited India from June 4 to 10. During the visit, the two sides engaged in detailed negotiations covering various components of the proposed BTA, including market access, sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT), digital trade, customs procedures, trade facilitation, and the overarching legal framework.
India is pushing for full exemption from a 26% reciprocal tariff on certain domestic goods, which the US has currently suspended until July 9. The urgency to finalize an interim agreement before the July 9 deadline has added momentum to the negotiations.
The United States continues to be India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade reaching $131.84 billion. The US accounts for approximately 18% of India’s total exports, 6.22% of imports, and 10.73% of overall merchandise trade.