India is reportedly prepared to finalize a trade agreement with the United States by initially focusing on easily achievable aspects. According to Commerce Minister Piyush Goyal, India is always ready to conclude trade pacts by addressing "low-hanging fruits". Goyal's remarks gain significance as a U.S. trade team is currently in New Delhi for trade talks with their Indian counterparts, with deliberations scheduled to conclude on June 10, 2025.
Goyal, currently on an official visit to Switzerland and Sweden to strengthen India's economic and trade ties with key European partners, expressed optimism about the ongoing discussions. When asked if an agreement could be reached before July 9, 2025, he stated, "I am a born optimist." He further emphasized that it is not necessary to wait for every issue in a trade agreement to be resolved before moving forward.
This approach of prioritizing "low-hanging fruits" suggests that India is keen to make swift progress in its trade relationship with the U.S. By addressing the less controversial aspects of the agreement first, both nations can begin to realize the benefits of increased trade and investment more quickly.
The U.S. and India are actively pursuing a bilateral trade agreement aimed at boosting market access for businesses in both countries. Despite concerns over potential U.S. tariff hikes on steel and aluminum, both nations have expressed commitment to resolving issues through bilateral talks. The agreement seeks to increase bilateral trade to $500 billion by 2030, a significant increase from the current $191 billion.
In February 2025, U.S. President Donald Trump and Indian Prime Minister Narendra Modi announced plans to negotiate the initial phase of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by the fall (September-October) of 2025.
India is reportedly pushing for a complete exemption from the 26% reciprocal tariff that the U.S. currently imposes on Indian exports. India was among the first countries to begin negotiating a trade deal with the U.S., aiming to avert President Trump's reciprocal tariffs, scheduled to take effect on July 9, 2025.
During 2024-25, Indian exports of iron, steel, and aluminum products to the U.S. totaled $4.56 billion, including $587.5 million in iron and steel, $3.1 billion in iron or steel articles, and $860 million in aluminum and related items.
The U.S. has been India's top trading partner for the fourth consecutive year in 2024-25, with bilateral trade reaching $131.84 billion. The U.S. accounts for approximately 18% of India's total goods exports, 6.22% of imports, and 10.73% of the nation's overall merchandise trade.
Piyush Goyal has described his meeting with U.S. counterpart Howard Lutnick in May as "constructive," and Lutnick has expressed optimism about a trade deal between the U.S. and India "in the not-too-distant future."
While trade negotiations are complex, both countries are committed to achieving a mutually beneficial outcome. India believes it presents a compelling case for a bilateral trade deal with the U.S., given its growth outlook and demographics.
