India-US Trade Talks Advance: First Phase Likely to Be Finalised by July

India and the United States are making significant progress in negotiations aimed at finalising the first phase of their bilateral trade agreement, with the possibility of concluding the deal by July. Commerce and Industry Minister Piyush Goyal, currently in Washington, is leading discussions with American officials, indicating a positive trajectory for the talks.

One of India’s key requests is to secure complete relief from the 26 per cent tariff imposed by the United States on certain goods. This request is part of broader efforts to enhance India’s export competitiveness, particularly in sectors such as leather and textiles, which are labour-intensive and vital to India’s economy.

Minister Goyal has shared on social media that discussions with U.S. Trade Representative Howard Lutnick have been fruitful, and the first tranche of the India-U.S. Bilateral Trade Agreement is expected to be completed in a timely manner. Sources familiar with the negotiations have confirmed that consultations with the U.S. Trade Representative have been completed, marking a crucial step in the process.

India’s focus on increasing exports and preserving its current trade positions has been a central theme of the discussions. A source close to the negotiations stated, ‘We want to increase our exports and preserve what we are already exporting. The BTA with the U.S. will be a win-win deal for both countries.’ This sentiment underscores the mutual benefits anticipated from the agreement.

While India has expressed a cautious approach towards vulnerable sectors such as agriculture and dairy, the negotiations are proceeding on a positive note. A source added, ‘Negotiations are proceeding on a very positive note, and we expect to conclude the agreement before the sunset clause set by the U.S., which expires on July 8.’ This deadline adds urgency to the talks.

Earlier, U.S. President Donald Trump had stated that India has offered zero tariffs in the ongoing negotiations, a significant point of alignment for both sides. The trade agreement is expected to strengthen economic ties between the two nations, creating new opportunities for trade and investment.

India’s trade relationship with the U.S. has been robust, with the U.S. maintaining its position as India’s primary trading partner for the fourth consecutive year. In 2024-25, trade figures reached $131.84 billion, with India achieving a goods trade surplus of $41.18 billion. This highlights the importance of the agreement in maintaining and expanding economic ties.

The leaders of India and the U.S. have committed to enhancing trade and investment relations, with the goal of boosting economic innovation and supply chain stability. The ‘Mission 500’ initiative, launched during their February meeting, aims to double current trade levels to USD 500 billion by 2030, reflecting a long-term vision for economic collaboration.

While the India-U.S. talks progress, India is also actively pursuing trade negotiations with the European Union, with expectations of reaching an initial agreement soon. India’s Commerce Ministry is set to visit Brussels this week for the next phase of negotiations with the EU, indicating a broader strategy to strengthen trade relationships globally.

The India-EU trade talks are showing significant progress, with both parties aiming to finalise an early harvest trade agreement this year. This indicates that India’s focus on expanding trade relationships is not limited to the U.S., but extends to other key economic partners as well.