Amid the tariff assault launched by Donald Trump, India and the United States have finalised the terms of reference for a proposed Bilateral Trade Agreement (BTA), marking a significant step toward deepening economic ties. The agreement, covering 19 chapters, addresses key trade issues such as tariffs, goods, non-tariff barriers, customs facilitation, rules of origin, and regulatory concerns, according to reports.
An Indian delegation, led by Additional Secretary in the Department of Commerce Rajesh Agrawal, will travel to Washington DC next week to kick off in-person negotiations. The talks, scheduled to begin on April 23 and last three days, aim to iron out differences before formally launching the BTA negotiations. Agrawal, who was recently appointed as the next Commerce Secretary, will assume his new role on October 1 but is already spearheading this critical initiative.
The BTA is part of a broader goal to more than double bilateral trade between the two nations, currently valued at $191 billion, to $500 billion by 2030. The US accounts for 18% of India’s total goods exports, with major items including drug formulations, telecom instruments, and precious stones. In 2024-25, India recorded a trade surplus of $41.18 billion with the US, a point of concern for American policymakers who are pushing for duty concessions in sectors like industrial goods, electric vehicles, wines, and agriculture products such as apples and dairy.
India, in turn, is expected to seek tariff reductions for its labour-intensive industries, including apparels, textiles, gems, and horticulture products.
The timing of the talks aligns with a 90-day pause on most US tariff hikes for major trading partners, including India, announced by President Donald Trump. This pause provides a window for India to push for an interim trade deal. The negotiations are seen as a chance for India to leverage global supply chain shifts, especially as US tariffs disrupt trade with China, Vietnam, and other nations.
As both countries prepare for the Washington talks, the focus will be on balancing mutual interests while addressing longstanding trade deficits and regulatory hurdles. If successful, the BTA could redefine India-US economic relations, fostering growth in a rapidly changing global trade landscape.
