India, US to continue engagement for early conclusion of trade pact
New Delhi: India and the US have decided to continue negotiations for early conclusion of a mutually beneficial bilateral trade agreement, the Commerce Ministry said on Friday.
The statement was issued after the return of the Indian official delegation led by Commerce and Industry Minister Piyush Goyal to New York for trade talks.
The delegation returned on September 24 after holding three-day talks.
Both sides held constructive meetings on various aspects of the trade deal, the ministry said in a statement.
“Both sides exchanged views on possible contours of the deal, and it was decided to continue the engagements with a view to achieving early conclusion of a mutually beneficial Trade Agreement,” it added.
During the visit, the minister held meetings with United States Trade Representative (USTR) Jamieson Greer and US Ambassador-designate to India Sergio Gor.
These deliberations were important as they took place after the US imposed a 25 per cent reciprocal tariff and an additional 25 per cent penalty on Indian goods entering the American market for purchasing Russian crude oil. At present, a total of 50 per cent additional import duty is imposed on Indian goods.
An official said that India has sought the removal of the 25 per cent penalty as it would be important for a deal.
The next dates for the negotiations have not yet been finalised.
The official also said US President Donald Trump’s move to impose 100 per cent import tariffs on branded pharmaceutical drugs from October 1 is likely to have an impact on Indian exports and the ministry is looking into it.
Indian pharmaceutical companies supply a substantial proportion of drugs to US residents, with four out of ten of all prescriptions filled in the US in 2022 being supplied by Indian companies.
“The talks are on track, we are trying for the Fall deadline ... it will be in tranches,” the official said.
The visit of Goyal and his officials comes against the backdrop of recently concluded day-long discussions in New Delhi between US Chief Negotiator Brendan Lynch and Special Secretary in the Department of Commerce Rajesh Agrawal on the proposed agreement.
On September 16, the commerce ministry stated that the day-long discussions with the visiting US team on a bilateral trade deal were positive, and both sides agreed to push for an early and mutually beneficial conclusion of the agreement.
The visit also assumed significance amid the US administration’s sudden decision to hike the application fee for H-1B visas to $1,00,000.
In February this year, leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement (BTA).
It was planned to conclude the first tranche of the pact by the fall (October-November) of 2025. So far, five rounds of negotiations have been held. The pact is aimed at more than doubling the bilateral trade to $500 billion by 2030 from the current $191 billion.
Goyal had earlier visited Washington in May for the trade talks. During that visit, he held deliberations with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion ($86.5 billion exports).
The US accounts for about 18 per cent of India’s total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country’s total merchandise trade.
Apart from meetings with the US government representatives on bilateral trade matters, the delegation also held discussions with key US-based businesses and investors on promoting trade and investment between India and the United States, the statement said.
The meetings with businesses and investors evoked a positive response, it said, adding business leaders reposed confidence in the Indian growth story and expressed their desire to intensify their business activities in the country.
