India-US trade pact talks progressing in positive atmosphere: Goyal

Patna: Negotiations between India and the US on the proposed trade agreement, which began in March, are progressing in a positive atmosphere and both the countries are satisfied with the progress, Commerce and Industry Minister Piysuh Goyal said on Thursday.

He said that in February this year, Prime Minister Narendra Modi and US President Donald Trump had instructed the trade ministers of both the countries to conclude the first phase of the proposed bilateral trade agreement (BTA) by fall (November) of 2025.

"Discussions have been going on in a positive atmosphere with seriousness since March. It is progressing, and both the countries are satisfied with the progress," Goyal told reporters here.

On Wednesday also, the minister stated that India is in 'active dialogue' with the United States for a trade agreement.

These remarks follow the announcement by Trump that there will be "no difficulty" for the two countries to come to a successful conclusion in trade talks and he looks forward to speaking with his "very good friend" Prime Minister Narendra Modi in the coming weeks.

In a post on Truth Social on Tuesday, the US president said he was "pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations."

Prime Minister Narendra Modi on Wednesday reacted warmly to Trump's positive assessment of trade talks between the two countries, expressing confidence that the ongoing negotiations will pave the way for unlocking the limitless potential of the partnership between them.

India and the US are close friends and natural partners, Modi has said on X, adding that both countries are working to conclude the trade discussions at the earliest.

The two nations have been negotiating a bilateral trade agreement since March. So far, five rounds of negotiations have been completed. For the sixth round, the US team, which was to visit India last month, deferred their visit after the announcement of an additional 25 per cent tariff on Indian goods for buying Russian crude oil.

The aim of the pact is to more than double bilateral trade in goods and services to USD 500 billion by 2030 from the current USD 191 billion.

Trade relations between the two countries have been strained due to the high tariffs. The US has imposed a steep 50 per cent import duty on Indian goods entering American markets from August 27. It is affecting exports of labour-intensive sectors such as shrimp, textiles, leather and footwear.

India has termed these tariffs as unfair, unjustified and unreasonable.

So far, no new dates have been finalised for the sixth round of negotiations.

The negotiations were stalled as the US is pressing for greater market access in politically sensitive areas such as agri and dairy sectors, which India cannot accept as it affects the livelihood of small and marginal farmers.

India on multiple occasions stated that it will not compromise the interests of farmers and cattle rearers.

The US is India's largest trading partner. In 2024-25, the bilateral trade in goods stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).

America is also the third-largest investor in India, with USD 76.26 billion FDI coming into India during April 2000 and June 2025. America accounts for 10 per cent of the total FDI India has received during the period.