Union Commerce Minister Piyush Goyal had a “forward-looking” meeting with US Trade Representative (USTR) Jamieson Greer recently about a mutually rewarding bilateral trade deal. The minister posted on X that India’s strategy towards the deal will be in line with its ‘India First’ and ‘Viksit Bharat’ policies, strengthening the Comprehensive Strategic Partnership between the two countries.

Earlier this month, Goyal had also met Greer and US Commerce Secretary Howard Lutnick in the US to finalize a multi-sector Bilateral Trade Agreement (BTA) to expand trade and investment opportunities for both nations. The initiative is intended to increase two-way trade, facilitate market access, reduce tariff and non-tariff barriers, and enhance supply chain integration.

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“Had a forward looking discussion with @USTradeRep Jamieson Greer on a mutually beneficial Bilateral Trade Agreement. Our approach will be guided by ‘India First’, ‘Viksit Bharat’ and our Comprehensive Strategic Partnership,” Goyal said on X.

India-US Bilateral Trade Agreement

During the visit of Prime Minister Narendra Modi to the White House in February, the Prime Minister and US President Donald Trump committed to negotiate the first phase of the BTA by fall 2025. The accord has been designed to promote economic expansion, enhance national security, and generate employment opportunities. As a part of this process, the two leaders have set an ambitious goal— “Mission 500″—that seeks to increase overall bilateral trade to $500 billion by 2030.

As per the Ministry of External Affairs, the BTA aims to increase trade in goods and services while providing equal and transparent policies between India and the US. The agreement will likely deal with tariff-related problems and improve investment opportunities across various sectors.

Trump’s Stance on Tariffs

Since taking office in January, Trump has been vocal about India’s tariff policies, often referring to the country as a “tariff king” and a “tariff abuser.” Ahead of Modi’s White House visit, Trump introduced reciprocal tariffs on several trade partners, including India. He recently claimed that India has agreed to lower its tariffs, stating, “They’ve agreed. They want to cut their tariffs way down now because somebody is finally exposing them for what they’ve done.”

But Indian authorities explained that negotiations with the US continue, and there has been no final commitment. Commerce Secretary Sunil Barthwal told a parliamentary committee that even though Trump has made reciprocal tariff announcements, there have been no new tariffs placed on Indian exports.

Impact on Trade and Future Prospects

The US continues to be India’s biggest trading partner, with Indian exports totaling almost $74 billion in 2024. Increased tariffs on Indian products would lower their competitiveness in the US market, impacting labor-intensive sectors. Therefore, India is concentrating on enhancing trade ties with the US via the BTA by eliminating tariff and non-tariff issues.

US Commerce Secretary Howard Lutnick, in a dialogue with India Today TV, stated that the US wants a better-balanced trade relationship with India, urging equal trade policies.