India-US BTA talks begin this week amid tariff concerns; physical round set for second half of May

India and the United States are set to begin a fresh round of talks this week for a Bilateral Trade Agreement (BTA), with virtual discussions kicking off immediately and in-person negotiations scheduled for the second half of May 2025. The Ministry of Commerce has confirmed the development, indicating a significant step forward in bilateral economic ties.

According to a senior Commerce Ministry official, “Virtual discussions to begin this week between India and US for a BTA,” with “discussions in physical mode to start in the second half of May 2025.”

The move follows a key round of meetings between officials from India’s Department of Commerce and representatives of the U.S. Trade Representative (USTR), held in Delhi from March 26 to 29. The meetings helped both sides “broadly come to an understanding on next steps towards BTA,” the official said.

The ministry emphasized that the ongoing process is backed by high-level political consensus. “There is a clear pathway which has been decided at leaders level,” the official noted.

Highlighting the strategic importance of the talks, the ministry said, “We have taken a path of liberalisation and trade agreement,” adding that there is hope the outcome will bring “more opportunities than concerns.”

The official acknowledged both challenges and potential gains: “There are both concerns and opportunities for India as far as tariffs go,” but expressed optimism about the progress, saying “Good progress on US BTA, hopeful of more opportunities than concerns.”

Trade between the two countries has remained strong, with the United States continuing as India’s top export destination. India exported goods worth $86.51 billion to the U.S. in 2024, and the ministry expects this momentum to grow further. “There will be higher trade with US,” the official added.