- India, US held high-level bilateral trade agreement negotiations.
- Talks address US tariff changes, July 24 deadline.
- India seeks preferential market access, expands trade scope.
India and the United States have entered another critical round of trade negotiations, with Commerce and Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer holding high-level discussions in New Delhi on Tuesday to advance the first phase of the proposed Bilateral Trade Agreement (BTA).
The talks come at a pivotal moment for both countries, as changes in the US tariff regime and an approaching July deadline add urgency to efforts to finalise the framework of the long-awaited trade pact.
High-Level Engagement in New Delhi
Greer arrived in the national capital for official discussions aimed at resolving outstanding issues in the first tranche of the agreement. The meeting, held at Vanijya Bhawan, was attended by Commerce Secretary Rajesh Agrawal and India’s Chief Negotiator Darpan Jain, who is also Additional Secretary in the Department of Commerce.
The latest round follows chief negotiator-level discussions held between June 2 and June 4 and is widely seen as an effort to put the finishing touches on the framework deal.
Speaking earlier this month, Agrawal had indicated that discussions between the two ministers would focus on finalising key elements of the agreement. US President Donald Trump also recently stated that both countries were “very close” to concluding the trade pact.
Why July 24 Matters
While India has repeatedly maintained that it does not negotiate trade agreements against fixed deadlines, the upcoming expiry of US tariffs imposed under Section 122 of the Trade Act has emerged as an important factor in the negotiations.
Addressing a recent summit, Goyal said India does not work with artificial timelines but acknowledged that if any deadline exists, it is effectively for the United States, reported The Financial Express.
“The tariffs will expire in the US and that is not something I have to be worried about. If the first tranche of the Bilateral Trade Agreement (BTA) is completed before July 24, I will be the happiest person,” Goyal said.
The 10 per cent additional tariffs were imposed after the US Supreme Court struck down the reciprocal tariffs introduced by the Trump administration. Since Section 122 tariffs can remain in force only for 150 days, they are scheduled to expire on July 24.
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Trade Pact Reworked After US Tariff Changes
The current negotiations are taking place against a dramatically altered tariff backdrop.
When India and the US announced the framework of the first phase of the BTA in February, the agreement was built around tariffs of up to 50 per cent imposed on Indian goods.
Under the framework, the US had agreed to reduce tariffs on India to 18 per cent and remove additional duties imposed on Indian exports linked to purchases of Russian oil.
However, the US Supreme Court subsequently struck down those tariffs, forcing both sides to reassess several aspects of the proposed agreement.
Following the court ruling, the Trump administration imposed a temporary 10 per cent tariff on all countries under Section 122, creating a more level playing field among US trading partners.
As a result, negotiators are now examining how the revised tariff structure affects the original framework and whether India can still secure a meaningful competitive advantage.
India Seeks an Edge Over Competing Exporters
A key objective for New Delhi remains ensuring that Indian exporters receive preferential access to the US market relative to competing nations.
“Trade deals are about getting preferential treatment over the competition. My effort in closing the deal is always that our exporters and products should benefit from preferential access compared to competing countries like those in the ASEAN region and our neighbours,” Goyal said.
“We are trying to work out with the US on how they will ensure that we will get a comparative advantage,” he added.
This issue has gained importance because countries such as Indonesia, Malaysia, Vietnam, Thailand, Bangladesh, Sri Lanka and Pakistan now face the same 10 per cent additional tariff imposed by the US.
Under the original framework, India enjoyed a tariff advantage, with competing nations facing duties ranging from 19 to 20 per cent.
The proposed agreement extends beyond tariff reductions and merchandise trade.
According to Goyal, the discussions with the US, as well as ongoing negotiations with the European Union and other partners, are increasingly focused on services, technology partnerships, education and tourism.
“The agreements with the US, European Union (EU) and others are very comprehensive and would also help us in services in a big way, opening the doors to technology exchange, education and tourism,” he said.
The interim agreement is based on a framework finalised earlier this year, under which India proposed reducing or eliminating duties on a range of US industrial and agricultural products.
These include Dried Distillers’ Grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among other products.
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The $500 Billion Commitment
As part of the broader understanding, India has also expressed its intention to purchase $500 billion worth of US goods over the next five years.
The proposed purchases include energy products, aircraft and aircraft components, precious metals, technology products and coking coal.
The commitment is viewed as a key element of efforts to deepen economic ties while addressing concerns over the bilateral trade balance.
New Concerns Around Section 301 Investigations
Even as negotiations progress, fresh uncertainties have emerged from Washington.
The Office of the US Trade Representative launched two Section 301 investigations in March covering around 60 economies. One probe focuses on alleged excess industrial capacity, while the other examines forced labour concerns in global supply chains.
India has been included in both investigations.
Officials familiar with the negotiations indicate that New Delhi is seeking greater clarity on how potential actions under Section 301 could affect the future trade relationship and the implementation of any agreement reached.
Trade Relationship Remains Significant
The US remained India’s second-largest trading partner in 2025-26.
India’s exports to the US rose 0.92 per cent to $87.3 billion during the fiscal year, while imports increased 15.95 per cent to $52.9 billion.
As a result, India’s trade surplus with the US narrowed to $34.4 billion in 2025-26 from $40.89 billion in the previous fiscal year.
With tariff rules evolving and the July 24 deadline approaching, the latest round of ministerial talks is expected to play a crucial role in determining whether the first phase of the India-US trade pact can be finalised in the coming weeks.
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