India, US make 'progress' on interim trade deal, BTA negotiations

Negotiators from India and the United States have made progress in finalising the details of an interim trade agreement and advancing negotiations on a broader bilateral trade agreement (BTA), the Indian commerce department stated on Friday, following four days of “meaningful and forward-looking discussions” in Washington.

 

“The meetings were conducted in a constructive and positive spirit with meaningful and forward-looking discussions enabling progress on key matters. Both sides agreed to remain engaged to maintain this momentum as they move forward,” the statement said.

 

The commerce department said the discussions covered a range of issues, including market access, non-tariff measures, technical barriers to trade, Customs and trade facilitation, investment promotion, economic security alignment, and digital trade.

 

An Indian delegation led by the chief trade negotiator, Darpan Jain, visited the US capital city from April 20 to 24 for another round of talks with American officials.

 

India is seeking to finalise a mechanism that would secure preferential access to the US market over its competitors, said Piyush Goyal, commerce and industry minister, on Monday. “We have almost finalised our free-trade agreement with them. We are trying to cross the ‘t’s and dot the ‘i’s, and work out what would be the mechanism by which India can get preferential market access in the US market, compared to our competitors. The team will be discussing these aspects while they are in Washington,” he had said.

 

India and the US are engaged in discussions aimed at reaching a balanced and mutually beneficial trade agreement, said a spokesperson for the ministry of external affairs on Thursday. “These engagements are ongoing and constructive. Both sides are working towards a balanced, mutually beneficial and forward-looking trade agreement, taking into account each other’s concerns and priorities, and to achieve a trade target of $500 billion by 2030,” he had said.

 

On February 20, the US Supreme Court revoked President Donald Trump’s authority to use the International Emergency Economic Powers Act (IEEPA) to impose country-specific “reciprocal” tariffs. The US administration subsequently imposed a blanket 10 per cent surcharge on all countries for 150 days from February 24.

 

India and the US announced an interim trade deal on February 2 and had planned to sign the pact by March. A joint statement was released on February 7, and the additional 25 per cent ad valorem tariffs imposed by the US on certain Indian exports over India’s Russian oil imports were removed. Under the interim deal, the US agreed to reduce tariffs on Indian goods to 18 per cent. India is also expected to seek clarity on the Section 301 investigations initiated by the US.

 

China rose past the US to become India’s largest trading partner in 2025-26. The US had been India’s largest trading partner for four consecutive years until 2024-25.