The fifth round of negotiations for the proposed Bilateral Trade Agreement (BTA) between India and the United States concluded in Washington on July 17, 2025. The talks, which spanned four days from July 14-17, were led by India's chief negotiator Rajesh Agrawal, Special Secretary in the Department of Commerce. Both nations are aiming to finalize an interim trade deal before August 1, 2025, coinciding with the deadline for the suspension of tariffs imposed during the Trump era.

During the fifth round of discussions, key sectors like agriculture and automobiles were prominent. The talks also encompassed non-market economies and SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies).

India has adopted a firm stance against U.S. demands for duty concessions in the agriculture and dairy sectors. Certain farmer associations have also urged the government to exclude agriculture from the trade pact. Conversely, the U.S. is seeking duty reductions on industrial goods, electric vehicles, wines, and agricultural products, including genetically modified crops.

As part of the proposed trade agreement, India is pushing for the removal of the additional 26% tariffs, along with reductions in duties on steel and aluminum (currently at 50%) and the automobile sector (25%). India has also reserved its right to impose retaliatory duties under World Trade Organization (WTO) norms. Furthermore, India seeks preferential access for its labor-intensive sectors, including textiles, gems and jewelry, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.

Both countries aim to conclude the first phase of negotiations by the fall of 2025. Trade between India and the U.S. has shown significant growth, with India's exports to the U.S. rising by 22.8% to $25.51 billion in April–June. The U.S. seeks greater access for its wines, petrochemicals, dairy items, apples, tree nuts and genetically modified (GM) crops.