The United States and India are poised to engage in critical trade discussions in New Delhi, beginning December 10th. The core focus of these upcoming talks is to accelerate the progress on the Bilateral Trade Agreement (BTA) between the two nations. Although the initial timeline envisioned the conclusion of the first part of the agreement by autumn 2025, recent developments in global trade policy, including tariff actions, have necessitated adjustments.
Reports have emerged, citing government sources, confirming the commencement of these vital negotiations. This follows a period of constructive dialogue, with India’s chief negotiator, Commerce Secretary Rajesh Agarwal, expressing high hopes on November 28th for signing the initial tranche of the BTA within the present calendar year. Speaking at the FICCI Annual General Meeting, Agarwal highlighted the significant advancements made, stating, “I think our expectations….we are very optimistic and very hopeful that we should find a solution within this calendar year.”
The discussions are expected to address and resolve previous trade challenges, such as the tariffs imposed by the Trump administration on a range of Indian products. The US had previously enacted reciprocal tariffs on several countries to address trade imbalances. Numerous rounds of discussions have already been held to iron out the details of the BTA.
The formal proposal for the India-US BTA, stemming from leadership directives in February, seeks to more than double bilateral trade. The ambitious target is to raise trade from the current USD 191 billion to USD 500 billion by 2030. This strategic economic initiative was first publicly announced during Prime Minister Narendra Modi’s visit to Washington earlier this year.