New Delhi: India and the United States on Wednesday advanced discussions on a long-planned bilateral trade agreement, with officials reviewing progress in ongoing negotiations to strengthen economic cooperation, the commerce ministry said. The two-day round of talks, which opened in New Delhi and will run until December 11, is aimed at settling key terms for what both sides describe as a mutually beneficial pact.
Commerce Secretary Rajesh Agrawal held talks with US Deputy Trade Representative Rick Switzer on the first day. In a social media post, the Department of Commerce said the delegations “exchanged views on matters related to India-US trade and economic ties, including on the ongoing negotiations for a mutually beneficial Bilateral Trade Agreement.”
Assistant US Trade Representative for South and Central Asia Brendan Lynch is leading the American team, while Joint Secretary Darpan Jain serves as India’s chief negotiator. This visit marks the second US delegation trip since the tariffs were imposed, following a round held on September 16.
The renewed engagement comes during a period of strain for Indian exporters after the Trump administration imposed a steep 50 per cent tariff on Indian goods entering the US. The initial 25 per cent duty was introduced over Washington’s concerns about a trade deficit with India, which stood at around $46 billion in 2024 to 25. A further 25 per cent levy was later added, citing India’s purchases of Russian crude. New Delhi has stated that resolving these tariff issues will be crucial to finalising the first phase of the trade deal.
Industry groups say the elevated duties have eroded competitiveness in the US market, which accounts for about 18 per cent of India’s exports. While exporters have tried to diversify shipments, the US remains a central destination. India’s merchandise exports to the US declined for a second straight month in October, falling 8.58 per cent to $6.3 billion.
The US is seeking tariff concessions on agricultural and industrial goods as part of the agreement. India has firmly opposed any concessions involving its agri and dairy sectors. Speaking at the Pravasi Rajasthani Divas in Jaipur on Wednesday, Commerce and Industry Minister Piyush Goyal said discussions are moving ahead. “Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement,” he told reporters.
Agrawal has previously noted that India and the US are conducting two parallel negotiations. One focuses on a framework to address reciprocal tariff concerns and the other on a comprehensive agreement. Leaders of both nations instructed officials in February to negotiate a pact, with the first tranche initially slated for the fall of 2025. Six rounds have been completed so far. The proposed agreement aims to raise bilateral trade to $500 billion by 2030 from the current $191 billion.