India negotiating bilateral trade agreement with US, says Piyush Goyal

With five rounds concluded so far, India-US trade negotiations faced a pause as the US deferred its visit after imposing a 50 per cent duty on Indian goods from August 27

Commerce and Industry Minister Piyush Goyal on Tuesday said India is in talks with the United States over a bilateral trade agreement (BTA), weeks after the Donald Trump-led administration imposed a 50 per cent punitive tariff on Indian imports. 

 

"We are in dialogue with the US for a BTA," he stated at an industry chamber event on sustainability, reported news agency PTI.

 

Five rounds of talks completed

 

India and the US have been holding negotiations on the pact since March, with five rounds concluded so far. After a 50 per cent duty was imposed on Indian goods from August 27, the US delegation deferred its planned visit for the next round of talks, originally scheduled to begin on August 25. No new dates have yet been fixed for the sixth round.

 

'Preparing support measures for exports'

 

In August, Goyal said the government was preparing a series of measures to boost domestic outreach and strengthen India’s global market presence, following the 50 per cent tariff imposed by the US on Indian exports.

 

India exported goods worth $437 billion in FY25. Between April and July of the current financial year, exports stood at $149 billion. Goyal added that the government would soon unveil measures to support all sectors, aimed at expanding domestic outreach and creating complementarities with global markets, so that exports this year surpass last year’s.

 

 Navigating impact of Trump tariffs

 

The minister stressed that the government remained committed to protecting Indian industry from stress or disruption arising from unilateral trade actions by other nations. He said there was little reason for concern over the steep tariff on Indian goods, as India’s share in global exports was only 2 per cent.

 

Earlier, attempts to reach agreement on a mini trade deal with the US failed, primarily because of Washington demand for lower duties on agricultural and dairy products, which India refused.

 

India's attempt to expand free trade agreements

 

India is extending its network of Free Trade Agreements (FTAs) with developed nations, including Australia, the United Arab Emirates (UAE), Switzerland, Norway, Liechtenstein, Iceland, and the UK. Negotiations are also underway with the European Union and other partners. According to Goyal, these agreements will open further global opportunities for Indian industries.

 

(With inputs from PTI)