India's Commerce and Industry Minister Piyush Goyal has urged the United States to finalize the ongoing bilateral trade agreement if they are satisfied with India's proposals. Goyal's statement comes as a U.S. delegation is in Delhi for trade discussions, signaling active engagement between the two nations to boost trade relations.
Goyal's remarks were in response to a statement by U.S. Trade Representative Jamieson Greer, who characterized India's proposal as the "best ever". "His happiness is very much welcome. And, I do believe that if they are very happy, they should be signing on the dotted lines," Goyal stated, according to a PTI report.
The ongoing discussions aim to finalize the initial phase of a trade deal that addresses tariff challenges faced by Indian exporters. This follows multiple rounds of negotiations, with the goal of increasing bilateral trade from $191 billion to $500 billion by 2030. In the fiscal year 2024-25, the U.S. was India's primary trading partner for the fourth consecutive year, with bilateral trade reaching $131.84 billion, including $86.5 billion in exports. The U.S. accounts for a significant portion of India's trade, comprising 18% of total goods exports, 6.22% of imports, and 10.73% of total merchandise trade.
Piyush Goyal clarified that the current visit of U.S. Deputy Trade Representative Rick Switzer is not specifically for negotiations but rather an opportunity for mutual understanding and relationship-building, as it is Switzer's first visit to India since assuming office three months ago. Goyal noted that "substantial discussions" have taken place with the visiting official.
While emphasizing that negotiations are progressing positively, Goyal stressed the importance of ensuring that any trade agreement benefits both sides. He cautioned against negotiating with strict deadlines, as it could lead to mistakes. "A deal is only done when both sides stand to benefit. And I don't think we should ever negotiate with deadlines or hard stops because you tend to make mistakes then," Goyal stated.
Exporters have underscored the significance of the agreement, particularly as India's merchandise exports to the U.S. have declined for two consecutive months. October saw an 8.58% reduction to $6.3 billion, attributed to substantial tariffs imposed by Washington.
Chief Economic Advisor (CEA) V Anantha Nageswaran indicated that India and the U.S. have resolved "most of their pending differences" on trade and that a formal agreement could be in place by March 2026. He also mentioned India's strong growth prospects for FY27 and described the rupee as “undervalued relative to fundamentals”.
The U.S. delegation's visit is considered crucial as both countries work towards concluding the initial phase of the agreement. This visit follows Washington's imposition of a 25% tariff, along with an additional 25% penalty, on Indian exports due to New Delhi's continued purchases of Russian crude oil.
