New Delhi: India and the United States are expected to reach an interim agreement on a bilateral trade deal by June 25, according to sources familiar with the matter. A delegation of US officials is scheduled to visit India next month to advance ongoing trade negotiations.
As per agency report, talks between the two nations are progressing in the right direction. The discussions gained momentum following the recent four-day visit of India’s lead negotiator, Rajesh Agrawal, Special Secretary in the Department of Commerce, to Washington. During the visit, Agrawal held detailed consultations with his American counterpart on the proposed agreement.
The urgency stems from the fact that the United States had imposed a 26 percent retaliatory duty on certain Indian products on April 2, which has been temporarily suspended until July 9. Both sides are now aiming to finalize an interim pact before this suspension period ends. However, the original 10 percent basic duty on Indian goods remains in place. India is reportedly pushing for a complete exemption from the 26 percent retaliatory tariff in the interim agreement.
The two countries have set a target to conclude the first phase of the Bilateral Trade Agreement (BTA) by autumn this year, around September or October.
The United States remained India’s largest trading partner for the fourth consecutive financial year in 2024–25, with bilateral trade reaching USD 131.84 billion. America accounted for approximately 18 percent of India’s total merchandise exports, 6.22 percent of imports, and 10.73 percent of total goods trade.
India recorded a merchandise trade surplus of USD 41.18 billion with the United States in 2024–25, up from USD 35.32 billion in 2023–24, USD 27.7 billion in 2022–23, USD 32.85 billion in 2021–22, and USD 22.73 billion in 2020–21. This widening trade gap has raised concerns in the US.
Both countries have also set a shared goal to more than double their bilateral trade to USD 500 billion by 2030.
