According to Livemint news reports, India and the US are likely to sign a long-pending bilateral trade agreement (BTA) before 8 July. Commerce and Industry Minister Piyush Goyal and India’s chief negotiator Rajesh Agrawal are leading a team to Washington for final discussions. Some delegates have already started leaving for the talks.
This deal is gaining urgency because of a 90-day pause granted by the US after it announced new, steep reciprocal tariffs on 2 April. The pause allows key partners, including India, to negotiate before facing the full impact of these tariffs.
As per the Livemint news reports, officials say that the talks are progressing well and both countries are optimistic. Originally, the trade deal was expected between September and November 2025, but the process has been fast-tracked.
The US had claimed that India had agreed to remove tariffs on most goods, but Indian officials clarified that tariff cuts are being negotiated selectively, not across the board. Both countries are focused on protecting their national interests during the deal-making process.
Indian negotiators are not compromising on sensitive sectors such as dairy and agriculture. These areas will not be opened up to imports, protecting the interests of Indian farmers and producers.
Additionally, a recent filing at the World Trade Organisation (WTO) was explained as a separate move. India is safeguarding its rights under global trade rules and keeping the option open to retaliate if unfair trade barriers are imposed.
Despite US-China trade relations improving, India is still seen as a better place for global companies, with more competitive tariffs. While the US has reportedly cut tariffs on some Chinese goods, the actual rates remain higher than those on Indian products.
During a recent event in Qatar, U.S. President Donald Trump expressed his disapproval of Apple's decision to expand iPhone manufacturing in India. However, the Indian government believes that companies make decisions based on profitability and the strength of the local market. India’s stable policies and production capabilities continue to attract global firms.
Read more on: Trump Tells Apple Not to Expand Production in India Amid Trade Tensions: Report
If signed before 8 July, the India-US trade agreement could mark a major reset in bilateral ties. It would help avoid heavy US tariffs and bring more stability and clarity to industries and global markets. Both sides are negotiating hard but with a spirit of cooperation.
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Published on: May 16, 2025, 10:11 AM IST
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