Is India Set to Secure the First Tranche of the US Trade Pact by Year-End?
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Synopsis
India is optimistic about finalizing the initial tranche of its trade agreement with the US by year-end, with key issues resolved. Commerce Secretary Agrawal highlights the ongoing negotiations and the potential benefits for Indian exports.
Key Takeaways
- India is optimistic about finalizing the trade agreement with the US.
- Most key issues have been addressed.
- The agreement will improve Indian exports when US tariffs are lifted.
- Regular discussions continue between India and the US.
- Commerce Secretary Agrawal is leading the negotiations.
New Delhi, Nov 28 (NationPress) India is optimistic about securing the initial tranche of its bilateral trade agreement (BTA) with the United States by the close of this year, as most issues have been addressed, stated Commerce Secretary Rajesh Agrawal on Friday.
Agrawal noted that the nation is "hopeful of reaching a resolution within this calendar year" and emphasized that "certain areas are non-negotiable for India".
During his speech at FICCI’s 98th AGM and annual convention, the Commerce Secretary reiterated their commitment to completing the first tranche by the autumn of 2025, highlighting significant progress in negotiations. He mentioned that the ministry is actively working with the US on the BTA while also navigating prolonged discussions concerning reciprocal tariffs.
New Delhi is currently engaged in two separate negotiations with the US: one focused on the trade deal and the other aimed at addressing additional reciprocal tariffs imposed by the US. This trade agreement will encompass both the 25 percent reciprocal tariffs and the 25 percent oil tariffs.
"We are involved in discussions over a comprehensive trade deal framework to tackle reciprocal tariff matters with the US," he added.
Agrawal emphasized that the trade agreement will be advantageous for Indian exports once higher US tariffs are lifted.
He informed the Parliamentary Standing Committee that India's exports to the US have seen growth. Regular virtual talks on the BTA have been ongoing, and the initial phase of India-US trade discussions is advancing rapidly.
President Donald Trump previously signaled positive developments regarding US-India relations, raising hopes that a bilateral trade agreement between the two largest democracies could soon be finalized. Trump indicated his intention to "reduce tariffs" imposed on India "at some point", suggesting that a breakthrough in trade negotiations could be imminent.
Point of View
The ongoing negotiations between India and the US signify a crucial moment for economic collaboration. With both nations holding regular discussions, the anticipated trade agreement could enhance trade relations and benefit Indian exporters. The nation's commitment to resolving key issues demonstrates a proactive approach towards international trade.
NationPress
28/11/2025
Frequently Asked Questions
What is the current status of India's trade agreement with the US?
India is optimistic about finalizing the first tranche of the bilateral trade agreement (BTA) with the US by the end of this year.
What are the key issues being negotiated in the trade pact?
Key issues include reciprocal tariffs, including a 25 percent tariff on goods and a 25 percent oil tariff.
How will the trade agreement benefit India?
The trade agreement is expected to boost Indian exports by removing higher US tariffs.
Who is leading the negotiations from India?
Commerce Secretary Rajesh Agrawal is leading the discussions and negotiations related to the trade agreement.
When is the expected completion date for the trade deal?
The first tranche of the trade agreement is targeted for completion by the end of this year.
