Hon’ble Union Minister of Commerce & Industry Shri Piyush Goyal will lead a high-level delegation to Washington on 16 May to accelerate negotiations on a proposed bilateral trade agreement (BTA) between India and the United States, according to a report by The Economic Times. The visit is expected to yield initial breakthroughs aimed at shaping a broader deal by the fall of 2025.
During the four-day visit, Shri Goyal is slated to hold strategic meetings with key US officials, including US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick. Talks will build upon previous sectoral discussions and focus on areas where both countries can offer mutual concessions to boost two-way trade.
The Economic Times report notes that negotiators are hoping to take advantage of a 90-day window—ending 9 July—during which the US has paused additional tariffs of 26% on Indian goods. This temporary suspension, announced in April, was aimed at addressing the growing trade imbalance between the two nations. However, a base 10% tariff continues to apply.
India is pushing for reduced duties on several labour-intensive export sectors, including gems and jewellery, textiles, leather, plastics, chemicals, shrimp, and select agricultural products. Conversely, the US is seeking tariff relief for electric vehicles, wines, industrial goods, petrochemicals, dairy, apples, and tree nuts.
Negotiations have already made progress, with both sides finalising the terms of reference for the BTA, comprising around 19 chapters. These include key areas such as goods, services, rules of origin, customs procedures, and non-tariff barriers. As per The Economic Times, non-tariff issues—such as regulatory hurdles faced by American products in the Indian market—will also be in focus during the discussions.
India’s Chief Negotiator Rajesh Agrawal and US counterpart Brendan Lynch held three days of preparatory talks in Washington last month. Earlier in March, Shri Goyal had also met with Greer and Lutnick to set the stage for the May round.
The US has emerged as India’s largest trading partner for the fourth consecutive year, with bilateral trade reaching USD 131.84 billion in 2024–25. The US now accounts for 18% of India’s total exports and over 10% of its overall merchandise trade. Despite these strong ties, Washington has expressed concerns over the growing trade deficit. India recorded a trade surplus of USD 41.18 billion with the US in the last fiscal year, up from USD 35.32 billion in 2023–24, as reported by The Economic Times.
The outcome of Goyal’s visit is expected to set the tone for a phased trade agreement that balances strategic interests while opening new avenues for economic collaboration.