iNDICA NEWS BUREAU-
India and the United States are set to begin negotiations on a landmark Bilateral Trade Agreement (BTA), which could significantly enhance trade between the two nations. This comes as U.S. President Donald Trump prepares to impose reciprocal tariffs on American trading partners, including India.
At a weekly briefing, India’s Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal outlined that the primary goal of the agreement is to strengthen bilateral trade in goods and services, improve market access, and reduce both tariff and non-tariff barriers.
“The two governments are in the process of advancing discussions on a multi-sector Bilateral Trade Agreement. Through the BTA, our objective is to strengthen and deepen India-U.S. two-way trade in the goods and services sector, increase market access, reduce tariff and non-tariff barriers, and deepen supply chain integration between the two countries,” Jaiswal said.
The announcement follows Prime Minister Narendra Modi’s visit to the U.S. in February 2025, where both countries expressed interest in negotiating a mutually beneficial BTA. India’s Commerce and Industry Minister Piyush Goyal also recently met with his U.S. counterparts to further these discussions.
“During PM’s visit to the U.S. in February 2025, both sides announced plans to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA). The Commerce and Industries Minister was in the U.S. and met his counterparts,” Jaiswal added.
A key feature of the BTA is its emphasis on supply chain integration, which could stimulate increased trade by removing obstacles and broadening market access, benefiting both economies.
While India has existing trade agreements with over 50 countries, including the Asia Pacific Trade Agreement and the South Asia Free Trade Agreement, a BTA with the U.S. could have substantial economic implications for India.
As negotiations progress, India is likely to advocate for greater market access for its goods and services, while the U.S. may push for enhanced agricultural exports to India. The outcome of these talks will be closely watched, as it could shape the future of India-U.S. trade relations.
Earlier, President Trump had criticized India’s high import duties, particularly on automobiles, in a speech to a joint session of Congress. “India charges us auto tariffs higher than 100%,” he remarked. Trump also outlined plans to implement reciprocal tariffs starting April 2, as part of his broader strategy to address what he sees as unfair trade practices. “Under the Trump administration, you will pay a tariff and in some cases a rather large one. Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries,” Trump stated, citing examples from the European Union, China, Brazil, India, and others.
