The terms of reference (ToRs) finalised by India and the US for the proposed bilateral trade agreement (BTA) include around 19 chapters, covering goods, services, non-tariff barriers, rules of origin, customs facilitation, dispute settlement and regulatory issues, official sources said. The Indian team leaves for Washington on a three-day visit on April 23.
The negotiations will be led by additional secretary, department of commerce, Rajesh Agarwal, who will take charge as commerce secretary from October 1. The Indian team will iron out differences on certain issues before formally launching negotiations for the proposed BTA.
Discussions on the modalities, pathway for BTA and scheduling negotiations within an autumn deadline are on the agenda, the official said. He indicated that both sides are attempting to cover as much ground as possible in the 90-day pause in reciprocal tariffs, and aim to reach some kind of an interim trade agreement or understanding. During the visit, the ToR, finalised in four days of talks in late March when a delegation led by US trade representative Brendan Lynch visited India, would be further developed, the official added.
Meanwhile, both sides are also involved in virtual discussions.
Since coming to power in January, President Donald Trump has aggressively used tariffs to balance US trade with the world by seeking greater access to American goods in world markets.
He has already announced reciprocal tariffs on all economies, but later sounded a pause for three months.
While the reciprocal tariffs have led to countries approaching the US for a trade agreement, India has a headstart among the 75 countries seeking a trade deal with the US. The government is taking every measure to ensure that trade with the US, the biggest trade partner, is not disrupted. In 2024-25, India’s merchandise exports to the US grew 11.6% on year to $86.51 billion, while imports grew 7.4% to $45.3 billion.
For balancing trade with India the US is looking at duty concessions in certain manufactured goods, automobiles (electric vehicles particularly), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts, and alfalfa hay. In return, India will seek lower duties for labour-intensive sectors like apparel, textiles, gems and jewellery, leather, plastics, chemicals, oil seeds, shrimp, and horticulture products.
Through the BTA both sides are aiming to take bilateral trade to $500 billion by 2030 from around $200 billion now.