Auckland: Union Commerce Minister Piyush Goyal on Wednesday said that discussions on the India-US Bilateral Trade Agreement (BTA) are progressing smoothly but acknowledged that several “sensitive and serious issues” remain to be resolved, which will take time.
“Talks are going on very well. There are many sensitive and serious issues, so naturally, it takes some time,” Goyal told reporters when asked about the status of the negotiations.
According to a senior government official, India and the US are “very close” to finalising the first phase of the ambitious agreement, with negotiators currently working on the “language of the agreement.” The official added that there are no new hurdles and both sides are optimistic about meeting the timeline.
Negotiators from both countries held a virtual round of discussions on October 23, marking the fifth round of talks since March. The first phase of the agreement was initially targeted for completion by the fall of 2025.
The proposed Bilateral Trade Agreement, initiated in February under the direction of both national leaderships, aims to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030.
Goyal led a high-level Indian delegation to the United States in September, where he was joined by Special Secretary and Chief Negotiator Rajesh Agrawal for advanced trade discussions. In mid-September, US officials led by Assistant US Trade Representative for South and Central Asia Brendan Lynch held “positive and forward-looking” talks with India’s Commerce Department in New Delhi, agreeing to accelerate efforts toward an early, mutually beneficial deal.
Over the past few months, India and the US have been negotiating an interim trade deal to address priority issues and set the stage for a broader agreement.
Earlier, US President Donald Trump had imposed 25 per cent tariffs on Indian goods effective August 1, despite ongoing hopes for an interim deal. Later that month, he raised tariffs by another 25 per cent, bringing the total to 50 per cent, citing India’s continued imports of Russian oil. These reciprocal tariffs, part of Trump’s broader trade policy targeting countries with which the US runs a deficit, came into full effect on August 27.
