New Delhi: As the United States and India work towards mending ties after recent trade tensions, a high-level U.S. delegation, led by Deputy U.S. Trade Representative Rick Switzer, is in India this week to resume discussions aimed at finalizing a "fair and mutually beneficial" bilateral trade agreement. The visit, which includes meetings with senior Indian government officials, signals a renewed effort to strengthen economic and commercial ties between the two nations.
The U.S. delegation's visit occurs alongside a trip by U.S. Under Secretary of State for Political Affairs Allison Hooker, who is in India from December 7-11 to advance the "strategic partnership" between the two countries. Hooker's agenda includes deepening economic and commercial ties, boosting U.S. exports, and fostering collaboration in areas like AI and space exploration.
These visits follow months of tension sparked by President Donald Trump's imposition of tariffs on Indian goods and sanctions on major Russian oil producers, which impacted India's energy sourcing. Specifically, in August 2025, the U.S. imposed a 25% tariff on Indian goods, followed by an additional 25% increase, citing India's continued purchase of Russian oil.
Despite these challenges, both countries have expressed optimism about finding a resolution. Commerce Secretary Sunil Agarwal stated in November that both sides were hopeful of finding a solution within the current calendar year. Ministry of External Affairs spokesperson Randhir Jaiswal also confirmed Switzer's visit, emphasizing that both governments remain engaged in concluding a balanced, multi-sectoral financial trade agreement.
While officials don't anticipate an immediate trade deal announcement, the ongoing discussions indicate a commitment to keeping communication channels open and maintaining the broader relationship. Ajay Srivastava, founder of the Global Trade Research Initiative, suggested that the U.S. could show "goodwill" by removing the penalty tariff imposed on India due to its oil purchases from Russia.
The proposed Bilateral Trade Agreement (BTA) aims to more than double India-U.S. bilateral trade from the current $191 billion to $500 billion by 2030. The agreement was initially discussed during Prime Minister Narendra Modi's visit to Washington earlier this year. India has already signed 14 Free Trade Agreements and six Preferential Trade Agreements and is currently negotiating FTAs with several partners, including the European Union.
In 2024-25, the U.S. was India's largest trading partner for the fourth consecutive year, with bilateral trade valued at $131.84 billion. The U.S. accounts for approximately 18% of India's total goods exports, 6.22% of its imports, and 10.73% of its total merchandise trade. However, India's merchandise exports to the U.S. declined for the second consecutive month in October, falling by 8.58% to $6.3 billion, due to the tariffs imposed by Washington.
Both nations are engaged in parallel negotiations, one focusing on a framework trade deal to address tariffs and another on a comprehensive trade deal. The original goal of completing the first part of the agreement by fall 2025 was delayed due to shifts in U.S. trade policy. The U.S. 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).
