Commerce and Industry Minister Piyush Goyal has expressed optimism regarding the ongoing trade negotiations between India and the United States, stating that discussions are "progressing well". Goyal made these remarks on Wednesday while attending the Pravasi Rajasthani Divas in Jaipur. He noted that a U.S. trade delegation has been in India since Tuesday for discussions.
According to reports, the U.S. delegation is led by Deputy U.S. Trade Representative (USTR) Rick Switzer, who is in Delhi for a two-day trade discussion with his Indian counterpart, Rajesh Agrawal. The main negotiator for the U.S., Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch, is expected to hold talks with India's chief negotiator and Joint Secretary in the Department of Commerce, Darpan Jain. Goyal also suggested he might meet with the U.S. delegation.
While Goyal has offered an optimistic outlook, he also cautioned against setting deadlines for finalizing a bilateral trade agreement. "We should never negotiate with deadlines because you tend to make mistakes then," Goyal stated on Thursday. He emphasized that a deal should only be finalized when both sides stand to benefit.
The minister noted that the negotiations have been progressing over several rounds, with five rounds having occurred in the past. He clarified that Switzer's current visit is not a negotiating round but rather an opportunity for the new Deputy USTR to familiarize himself with the ongoing discussions.
These discussions have gained importance after Commerce Secretary Rajesh Agrawal's recent statement expressing India's optimism about securing a framework trade agreement this year, which could resolve tariff-related challenges for Indian exporters. While a full Bilateral Trade Agreement (BTA) may take more time, Agrawal has confirmed India's engagement in protracted negotiations with the U.S. on a framework trade deal.
Officials from both countries are engaged in separate negotiations, focusing on a framework trade deal addressing tariffs and a comprehensive trade agreement. Following directions from leaders in February, negotiations commenced with the aim of finalizing the initial phase by the fall of 2025. The ultimate objective is to increase bilateral trade from $191 billion to $500 billion by 2030.
The path toward a BTA has faced complications due to U.S. tariff policies, including tariffs imposed on Indian goods. Despite these challenges, discussions on a BTA continue, with multiple rounds held to enhance India-U.S. economic relations.
In 2024-25, the U.S. remained India's largest 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 overall trade, including 18% of its goods exports, 6.22% of its imports, and 10.73% of its total merchandise trade. Exporters emphasize the importance of the agreement, particularly as India's merchandise exports to the U.S. have declined for two consecutive months.
