The Commerce Secretary of India on Friday said that the first tranche of bilateral trade agreement with the United States will be sealed before the end of 2025. India and the United States are holding regular virtual trade talks and New Delhi expects a bilateral trade deal to be sealed before the end of the year, Commerce Secretary Rajesh Agarwal said.
Speaking at the FICCI 98th AGM & Annual Convention in Delhi, Agarwal added that most issues have already been resolved and only a few lingering matters remain which are potentially solvable at the political level.
“A lot has changed in the global trade landscape since talks began for the Bilateral Trade Agreement (BTA),” Agarwal noted. He expressed optimism that India and the US can conclude a deal within the current calendar year, saying there is “not much left to negotiate”.
Tariff rollback key to India’s strategy
The secretary revealed that India is simultaneously negotiating two parallel frameworks with the US. One is focused on a full trade agreement and another addressing the reciprocal tariffs recently imposed by the American administration. These tariffs include a 25% levy on a broad range of Indian exports and a 25% oil surcharge. This dual-track negotiation aims to resolve both standard trading terms and the additional tariff burden.
India and the US were initially targeting completion of the first tranche of the agreement by fall 2025. However, tariff-related policy shifts in Washington have altered the roadmap, he added. Despite this, the Commerce Secretary stressed that discussions have moved significantly forward. “We are close. We have tried to iron out most of the issues. Now it is only a matter of time when the two countries find the right landing zone to announce it,” he said.
Agarwal reiterated that elimination of reciprocal tariffs remains a key priority for India. “We need to find a pathway for complete removal of reciprocal tariffs in the process of concluding a full BTA,” he said, signalling that the broader deal may take longer. “We will not hurry up. We are working on various aspects of the BTA,” he added.
Deal aims to lift bilateral trade to $500 bn
The proposed Bilateral Trade Agreement was formally advanced in February on the direction of both governments and aims to more than double annual bilateral trade — from the current $191 billion to $500 billion by 2030. Discussions were first publicly confirmed during Prime Minister Narendra Modi’s visit to Washington earlier this year.
However, the pathway to a deal has grown more complex following tariff escalations by the United States. President Donald Trump imposed a 25% duty on Indian goods from August 1, followed by another 25% hike days later, linking the measures partly to India’s continued import of Russian crude. The US has justified the tariffs under its widening review of trade deficits with partner countries.
Despite these challenges, Agarwal said the negotiation environment remains constructive. “We are in a zone where one can say it is something that we can achieve in a very short while,” he noted.