India, US Trade Talks: Bilateral Agreement Progress

New Delhi, Dec 10 (PTI) India and the US on Wednesday reviewed the ongoing negotiations for a proposed bilateral trade agreement to further strengthen economic ties, according to the commerce ministry.

The two-day talks that began here are aimed at finalising a mutually beneficial trade pact.

On the first day, Commerce Secretary Rajesh Agrawal met US Deputy Trade Representative Rick Switzer.

"The two sides exchanged views on matters related to India-US trade and economic ties, including on the ongoing negotiations for a mutually beneficial Bilateral Trade Agreement," the Department of Commerce said in a social media post.

The discussions will conclude on December 11.

The talks are important as the Donald Trump administration has imposed a steep 50 per cent tariff on Indian goods entering American markets.

Indian industry and exporters are eagerly waiting for the conclusion of the negotiations and announcement of a deal, as the high import duties are hurting their shipments to America.

Though they are exploring other markets to maintain their export profits, the US is a key destination for them as it accounts for about 18 per cent of the country's exports.

Initially, the US imposed a 25 per cent duty on Indian goods, citing trade deficit concerns with India, which stood at around USD 46 billion in 2024-25. An additional 25 per cent tariff was imposed later as a penalty on India for buying Russian crude.

India has stated that the resolution of these tariffs would be key to firming up the first phase of the trade deal.

As part of the pact, the US is seeking duty concessions on agricultural products and industrial goods. India has strongly opposed any concessions on the agri and dairy sectors.

Speaking at the sidelines of the Pravasi Rajasthani Divas in Jaipur, Commerce and Industry Minister Piyush Goyal on Wednesday said talks with the US on the proposed bilateral trade agreement are progressing.

"Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement," Goyal told reporters.

The US' chief negotiator for the pact, Assistant US Trade Representative for South and Central Asia, Brendan Lynch, is also part of the US delegation. India's chief negotiator is the Joint Secretary in the Department of Commerce, Darpan Jain.

This is the US officials' second trip since the imposition of high tariffs.

The US officials last visited India on September 16.

While noting that the Bilateral Trade Agreement (BTA) will take time, Agrawal has earlier 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.

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 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). 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.

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.