New Delhi— India has reached an advanced phase in negotiations for a bilateral trade agreement with the United States, Union Commerce and Industry Minister Piyush Goyal said on Monday, indicating steady progress towards finalising the first tranche of the pact.
Speaking to the media after the conclusion of the India–New Zealand Free Trade Agreement negotiations, Goyal said recent discussions with the US delegation had helped move talks forward. US Deputy Trade Representative Rick Switzer and his team were in India earlier this month to review the status of the negotiations, with the two-day talks concluding on December 11.
The minister noted that India has already finalised free trade agreements with three members of the Five Eyes intelligence alliance—Australia, the United Kingdom and New Zealand—and is now working towards expanding its trade footprint with other strategic partners.
He added that India is also preparing to restart trade negotiations with Canada and is expected to soon initiate discussions on the terms of reference for a proposed agreement. According to Goyal, these developments underline India’s growing strategic relevance in global geopolitics.
The India–US trade negotiations are considered crucial as both countries are aiming to conclude the first phase of the Bilateral Trade Agreement at a time when Indian exporters are facing high tariffs in the American market. The Trump administration has imposed duties of up to 50 per cent on certain Indian goods, significantly impacting shipments to the US.
While Indian exporters are exploring alternative markets, the United States remains a critical destination, accounting for nearly 18 per cent of India’s total exports. Industry experts have stressed that resolving tariff-related issues will be key to successfully finalising the initial phase of the agreement.
As part of the proposed deal, the US has sought tariff concessions on agricultural products such as almonds, corn and apples, along with some industrial goods. India, however, has maintained a firm stance against opening up sensitive agriculture and dairy sectors, asserting that the interests of farmers and MSMEs will not be compromised.
The trade talks gained momentum in February this year when leaders of both countries directed officials to begin negotiations, with an initial plan to conclude the first tranche by the fall of 2025. So far, six rounds of talks have been held, with the broader objective of more than doubling bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.
The US continued to be India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade valued at USD 131.84 billion, including USD 86.5 billion in Indian exports.
