New Delhi [India]: India and the United States are making substantial progress in their bilateral trade negotiations, with both nations working towards expanding trade, improving market access, and reducing tariff and non-tariff barriers, the Ministry of External Affairs (MEA) stated on Friday.
During a weekly media briefing, MEA spokesperson Randhir Jaiswal highlighted the ongoing efforts to establish a Bilateral Trade Agreement (BTA) between the two countries, which aims to benefit multiple sectors.
“India and the US are in the process of taking bilateral trade negotiations forward. The two governments are actively working to build a framework for the BTA, which would aim to expand trade, enhance market access, reduce tariff and non-tariff barriers…,” Jaiswal said, signaling a potential breakthrough in the discussions.
This development comes after the 14th Ministerial-level meeting of the India-US Trade Policy Forum (TPF), co-chaired by India’s Commerce and Industry Minister Piyush Goyal and US Trade Representative Ambassador Katherine Tai. The TPF has played a crucial role in strengthening bilateral trade and economic ties between the two nations.
Strengthening Economic Relations
The Indian government remains actively engaged with the US administration to finalize a mutually beneficial trade agreement.
“Govt of India remains engaged with the US administration at various levels to arrive at a mutually beneficial multisector bilateral trade agreement,” Jaiswal added.
Bilateral trade between the two nations has been steadily growing, with annual trade in goods and services reaching around USD 200 billion. The proposed BTA aims to further tap into this potential by addressing market access issues and trade barriers.
The key focus areas of the BTA include:
- Reducing tariff and non-tariff barriers
- Expanding trade in goods and services
- Enhancing market access
- Strengthening supply chain integration
US Stance on Reciprocal Tariffs
On February 13, the US government issued a memorandum emphasizing the need for reciprocal trade agreements with international partners. The US Commerce Secretary and the United States Trade Representative (USTR) have been tasked with assessing the impact of non-reciprocal trade agreements on American interests.
During Prime Minister Narendra Modi’s US visit in February 2025, both nations expressed their commitment to finalizing a multi-sector BTA.
Commerce Minister Piyush Goyal further advanced discussions during his March 3-7 visit to the US, where he met US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
Trump’s Take on Trade Tariffs
Former US President Donald Trump has been vocal about India’s high tariff rates. He has criticized India’s import duties, particularly on automobiles, and announced plans to introduce reciprocal tariffs on countries like India and China.
“We will soon impose reciprocal tariffs — they charge us, we charge them. Whatever a company or a country, such as India or China, charges, we want to be fair; hence, reciprocal,” Trump stated.
He further pointed out India’s over 100% tariffs on automobile imports, calling it a key area of concern for the US. Trump also vowed to introduce a reciprocal tax starting April 2, asserting that the US would no longer be taken advantage of in trade negotiations.
Security and Defence Cooperation with the US
Apart from trade discussions, MEA spokesperson Randhir Jaiswal also addressed US Intelligence Chief Tulsi Gabbard’s recent visit to India. Gabbard held meetings with Defence Minister Rajnath Singh, External Affairs Minister S Jaishankar, and National Security Adviser Ajit Doval to discuss security and defence cooperation.
“She met with Defence Minister Rajnath Singh, and they discussed security and defence cooperation. She also met with External Affairs Minister S Jaishankar and National Security Adviser Ajit Doval. During the discussions, the Indian side expressed concerns about anti-India activities in the US, particularly in Washington. The Indian officials conveyed their expectation that the US would take necessary actions to address these concerns,” Jaiswal stated.
Gabbard’s visit underscored the shared commitment between India and the US to combat terrorism and enhance cooperation in maritime and cyber security. The meetings reflected the growing strategic partnership between the two nations.