India and the United States on Tuesday concluded advanced negotiations on the proposed Bilateral Trade Agreement (BTA), with both sides engaging in in-depth discussions on several key trade areas during a week-long meeting held from June 4–10 in New Delhi. The talks were led by a visiting US delegation headed by an Additional US Trade Representative.
According to an official familiar with the matter, the discussions were "productive," setting the stage for an interim trade pact by the end of June and a broader agreement by fall 2025.
Key issues on the negotiation table
The deliberations covered a wide range of trade and regulatory topics. Notable among them were:
Market Access: Both countries explored opportunities to enhance mutual access to goods and services, focusing on reducing trade barriers and tariffs.
Digital Trade: A major area of interest for the US, digital trade discussions included concerns over cross-border data flow restrictions and India’s competition policies. US digital service providers have consistently flagged these issues as barriers to operating efficiently in India.
Technical Barriers to Trade (TBT): These standards, which affect food safety and agricultural trade, were a focal point. SPS measures relate to protecting humans, animals, and plants from diseases and pests, while TBT deals with technical regulations and compliance requirements.
Customs and trade facilitation: Talks also addressed the streamlining of customs procedures to improve ease of doing business and reduce transaction costs.
Legal framework: Establishing a robust legal architecture to support long-term trade and investment relations was also discussed.
India-US trade deal
Negotiators aim to conclude the initial tranche of the BTA by September–October 2025. However, momentum is building for an interim agreement to be reached sooner, possibly before July 9, when the US suspension of proposed tariffs on Indian goods expires.
India is reportedly pushing for a full exemption from a 26% reciprocal tariff on domestic products as part of the interim deal.
India-US economic ties in numbers
The US remained India's top trading partner for the fourth consecutive year in 2024–25. Bilateral trade stood at USD 131.84 billion, with the US accounting for: 18% of India’s total goods exports, 6.22% of total imports, and 10.73% of overall merchandise trade
Both countries are optimistic about the path ahead, with talks making notable headway toward a balanced and mutually beneficial agreement. Continued engagement is expected to help achieve “early wins” while laying the groundwork for a comprehensive trade pact.
With inputs from PTI