Indian team to visit US this week for trade talks amid tariff tension

A senior Indian delegation will travel to the United States this week to hold another round of trade negotiations, marking a key step toward the proposed Bilateral Trade Agreement (BTA) between the two countries.

Last Thursday, Prime Minister Narendra Modi spoke with US President Donald Trump and said that good progress had been made in trade negotiations between the two countries.

Talks on the pact have been underway since February, when leaders from both nations instructed their officials to work toward a deal and finalise its first tranche by the fall of 2025. Five rounds of negotiations have already been completed. "The Indian team will visit this week," an official told news agency PTI, confirming that discussions are on track and progressing well.

Commerce and Industry Minister Piyush Goyal visited New York last month, where he led an official delegation for trade consultations with American counterparts. After that meeting, both sides agreed to continue negotiations for an "early conclusion of a mutually beneficial bilateral trade agreement."

During his US visit, Goyal held discussions with United States Trade Representative (USTR) Jamieson Greer and US Ambassador-designate to India Sergio Gor, covering multiple facets of the proposed trade framework. 

The negotiations come against the backdrop of a 25 per cent reciprocal tariff and an additional 25 per cent penalty imposed by the US on Indian goods, in response to India's continued purchase of Russian crude oil. This effectively subjects Indian exports to a total additional import duty of 50 per cent, underscoring the importance of the BTA in easing trade frictions.

The agreement aims to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion. The United States has remained India's largest trading partner for the fourth consecutive year in 2024–25, with total trade valued at $131.84 billion, including $86.5 billion in exports from India.

Currently, the US accounts for around 18 per cent of India's total goods exports, 6.22 per cent of imports, and 10.73 per cent of the country’s total merchandise trade, making the proposed agreement pivotal to New Delhi’s external trade strategy.