India, US advancing toward key bilateral trade pact, says Piyush Goyal

India and the US are moving forward towards a bilateral trade agreement, Commerce and Industry Minister Piyush Goyal said on Wednesday (December 10), adding that the US team is in New Delhi for the negotiations.

“Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement," Goyal told reporters here at the Pravasi Rajasthani Divas. The Union Minister indicated that he may meet the visiting US official team.

A delegation led by Deputy US Trade Representative (USTR) Rick Switzer is in the national capital for two-day trade talks with his Indian counterpart Rajesh Agrawal.

The US's chief negotiator for the pact, Assistant US Trade Representative for South and Central Asia Brendan Lynch, will hold discussions with India's chief negotiator and Joint Secretary in the Department of Commerce, Darpan Jain.

First tranche of Indo-US trade deal

The visit assumes significance as India and the US are working to finalise the first tranche of the pact. This is the US officials' second trip since the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market due to New Delhi’s purchase of Russian oil. The US officials last visited India on September 16.

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Earlier, on September 22, Goyal led an official delegation to the US for trade talks. The talks are crucial as Commerce Secretary Rajesh Agrawal had recently said that India was optimistic about of reaching a framework trade deal this year itself, which should address the tariff issue to the benefit of Indian exporters.

Elaborating further, the Commerce Secretary said that India is engaged in protracted negotiations with the US on a framework trade deal that will address the reciprocal tariff challenge faced by Indian exporters.

Two parallel negotiations

India and the US are having two parallel negotiations-one on a framework trade deal to address tariffs and another on a comprehensive trade deal.

In February, leaders of the two countries directed officials to negotiate an agreement. It was planned to conclude the first tranche of the pact by the fall of 2025. So far, six rounds of negotiations have been held. The agreement aims to more than double bilateral trade to USD 500 billion by 2030, from the current USD 191 billion.

The backdrop

The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports).

Also Read: India-US trade deal likely this year, says Commerce Secretary

The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent of its imports, and 10.73 per cent of its total merchandise trade. According to exporters, the agreement is important as India's merchandise exports to the US declined for the second consecutive month in October, falling by 8.58 per cent to USD 6.3 billion due to the hefty tariffs imposed by President Trump.

(With agency inputs)