India-US BTA: Officials discuss opportunities for 'early mutual wins'

India and the United States (US) have discussed the pathway for an early tranche of the proposed bilateral trade agreement (BTA) during an in-person meeting of officials in Washington last week, the department of commerce said on Tuesday.

 

Chief negotiator and commerce secretary designate Rajesh Agrawal, who headed a team of commerce department officials, held talks with his counterpart in Washington during April 23-25.

 

“The team discussed the pathway for concluding the first tranche of the mutually beneficial, multi-sector bilateral trade agreement by fall of 2025, including through opportunities for early mutual wins,” the statement said. It added that both sides had “fruitful discussions” on wide-ranging subjects covering “tariff as well as non-tariff matters.”

 

 

While both sides have resolved to conclude the first tranche of the BTA by fall, Indian officials have spoken about concluding an ‘early tranche’ by July 8. This is when Washington’s current pause on country-specific reciprocal tariffs will expire.

 

People aware of the matter said that the focus, so far, has been on working out a deal that is ‘realistically achievable’ and a win-win for both sides, taking into account sensitivities around tariffs and broader economic policies.

 

While ‘productive’ sectoral expert-level engagements had taken place virtually earlier this month, in-person engagements are planned from May-end. 

 

“The productive discussions are part of bilateral efforts in line with Leaders’ Statement of February 2025 to enhance and expand India-US economic ties and supply chain integration through the Bilateral Trade Agreement,” the statement said.

 

This was the second in-person discussion between both sides since the announcement in February to finalise the first tranche of the BTA by fall 2025.

 

Earlier, bilateral discussions were held in March during assistant US Trade Representative (USTR) Brendan Lynch’s visit to New Delhi.

 

The terms of reference (ToRs) were finalised by India and the US for the proposed BTA in March and is likely to include around 19 chapters. They will be covering goods, services, non-tariff barriers, rules of origin, customs facilitation, dispute settlement and regulatory issues.

 

According to the New York Post, Treasury Secretary Scott Bessent had told reporters last week that trade talks with India are “very close” to reaching a successful conclusion because the world's most populous nation doesn't have ‘so many high tariffs’.

 

“India also has fewer non-tariff trade barriers, obviously, no currency manipulation, and very, very little government subsidies, so that reaching a deal with the Indians is much easier,” Bessent had said.

 

Separately, President Donald Trump had told reporters at the White House during the signing of executive orders that India is going to reduce its high tariffs as part of the BTA.