The talks have gained urgency amid the imposition of steep tariffs by the US, including duties of up to 50 per cent on certain Indian goods, which have adversely impacted Indian exporters

India has reached an advanced stage of negotiations on a bilateral trade agreement with the United States, Commerce and Industry Minister Piyush Goyal said on Monday, indicating steady progress toward finalising a key economic pact between the two strategic partners.

Speaking to the media in New Delhi, Goyal said recent high-level discussions with the US side have helped move the talks forward. US Deputy Trade Representative Rick Switzer and his team were in India earlier this month to review the status of negotiations, with the latest round of talks concluding on December 11. According to the minister, the discussions have matured significantly and are now close to the final stages.

Goyal made the remarks while announcing the conclusion of negotiations for the India–New Zealand Free Trade Agreement, highlighting India’s expanding global trade footprint. He noted that India has already finalised free trade agreements with three members of the Five Eyes intelligence alliance—Australia, the United Kingdom and New Zealand—and is preparing to resume trade talks with Canada. Discussions on the terms of reference with Canada are expected to begin soon, reflecting India’s growing strategic and economic importance in global geopolitics.

The India–US trade negotiations are particularly significant as both countries are working toward finalising the first tranche of a proposed Bilateral Trade Agreement (BTA). The talks have gained urgency amid the imposition of steep tariffs by the US, including duties of up to 50 per cent on certain Indian goods, which have adversely impacted Indian exporters.

Industry stakeholders have been closely watching the negotiations, as the US remains India’s most important export destination, accounting for nearly 18 per cent of the country’s total exports. While exporters are attempting to diversify into alternative markets, the American market continues to be critical for sustaining export growth and profitability.

Experts say resolving the tariff issue will be central to concluding the first phase of the trade deal. As part of the negotiations, the US has sought duty concessions on agricultural products such as almonds, corn and apples, along with select industrial goods. India, however, has firmly opposed concessions in sensitive areas, particularly agriculture and dairy, maintaining that the interests of farmers and micro, small and medium enterprises will not be compromised.

The trade talks were formally mandated in February when leaders of both countries directed officials to negotiate the agreement, with an initial target of concluding the first tranche by the fall of 2025. So far, six rounds of negotiations have been completed. The proposed agreement aims to more than double bilateral trade to USD 500 billion by 2030 from the current level of around USD 191 billion.

The US continued to be India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade valued at USD 131.84 billion, including USD 86.5 billion in Indian exports.