India-US BTA: Expectations on the rise that a deal could be finalised in coming weeks
Team led by the commerce secretary is in the US, formal talks to start once US shutdown ends
- Oct 16, 2025,
- Updated Oct 16, 2025 7:01 PM IST
With a team of Indian officials led by Commerce Secretary Rajesh Agarwal in the US, there is expectation that the two countries could reach a consensus in the coming weeks and finalise the first tranche of the bilateral trade agreement.
According to sources, there is broad consensus between India and the US on several critical sectors and Washington DC is also more understanding of India’s concerns on market access for sensitive sectors such as agriculture and dairy.
India is also prepared to buy more defence equipment from the US and there is expectation in New Delhi that the US will lower its tariffs, especially on labour-intensive exports such as textiles and leather goods, where tariffs could be about 20%, if not lesser.
India has also shown its willingness to diversify its crude oil purchases and buy more from the US although how it will tackle the US demand to altogether stop purchase from Russia is yet to be seen.
Agarwal had on Wednesday said India is willing to purchase more crude oil from the US if it is at the right price. Randhir Jaiswal, the official spokesperson of the Ministry of External Affairs said India and the US are in discussions to increase energy procurement but did not give further details.
The current negotiations between India and the US are not formally being called the sixth round of talks due to the ongoing shutdown in the US it is expected that the two countries will be able to reach an agreement on how to proceed further.
A bilateral trade agreement would be useful for both countries. The US is looking for support amidst China’s curbs on rare earth minerals that has become the latest flashpoint between the two countries. For India, the US remains a key export market and 55% of its exports are currently hit by the 50% tariffs levied by the US. India’s exports to the US have been on a downward trajectory at just $5.5 billion in September as against $8.8 billion in May.
With a team of Indian officials led by Commerce Secretary Rajesh Agarwal in the US, there is expectation that the two countries could reach a consensus in the coming weeks and finalise the first tranche of the bilateral trade agreement.
According to sources, there is broad consensus between India and the US on several critical sectors and Washington DC is also more understanding of India’s concerns on market access for sensitive sectors such as agriculture and dairy.
India is also prepared to buy more defence equipment from the US and there is expectation in New Delhi that the US will lower its tariffs, especially on labour-intensive exports such as textiles and leather goods, where tariffs could be about 20%, if not lesser.
India has also shown its willingness to diversify its crude oil purchases and buy more from the US although how it will tackle the US demand to altogether stop purchase from Russia is yet to be seen.
Agarwal had on Wednesday said India is willing to purchase more crude oil from the US if it is at the right price. Randhir Jaiswal, the official spokesperson of the Ministry of External Affairs said India and the US are in discussions to increase energy procurement but did not give further details.
The current negotiations between India and the US are not formally being called the sixth round of talks due to the ongoing shutdown in the US it is expected that the two countries will be able to reach an agreement on how to proceed further.
A bilateral trade agreement would be useful for both countries. The US is looking for support amidst China’s curbs on rare earth minerals that has become the latest flashpoint between the two countries. For India, the US remains a key export market and 55% of its exports are currently hit by the 50% tariffs levied by the US. India’s exports to the US have been on a downward trajectory at just $5.5 billion in September as against $8.8 billion in May.