India, US expect to conclude first tranche of BTA by fall: Nirmala Sitharaman

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman addresses the Indian diaspora during a gathering at the India Community Centre, in San Francisco, US
| Photo Credit:
@FinMinIndia

Finance Minister Nirmala Sitharaman expects the first tranche of the Bilateral Trade Agreement (BTA) to be concluded by fall (October-November) this year. She also assured her commitment to maintaining the fiscal deficit below 4.5 per cent by 2026.

Speaking to the Indian diaspora at the India Community Centre in San Francisco, California, on Sunday (US time), she said India is one of the countries which actively engage with the new administration in the US to see how best the country can get a mutually beneficial bilateral trade agreement done.

“The priority that we gave to engage with the government here is more than obviously seen with Prime Minister himself visiting the US in February. You had the commerce and trade minister come (here to the US). I have (also) come here… I am scheduled to meet the Treasury Secretary, my counterpart here,” she said. She mentioned the visit of US Vice President JD Vance starting today.

She also highlighted that, amidst all this, the additional USTR visited India to assess progress and engage with the negotiating team handling tariff-related negotiation, and with the BTA that India wants to sign. “In fact, the progress of the agreement, or the trade agreement that we are working on, at least the first tranche, is something which we hope to conclude by the fall this year,” she said.

Meanwhile, when asked about fiscal deficit, Sitharaman said that during the Covid-19 pandemic the fiscal deficit went up. But in 2021, the current Modi government came up with a clear plan to manage the deficit. “We set year-on-year targets and committed to bringing the fiscal deficit below 4.5 per cent by 2026, which we have been following each year without fail,” she explained.

A day before the International Monetary Fund (IMF) is to come out with latest World Economic outlook, the Finance Minister reiterated that India is the fastest growing economy. “When IMF or World Bank recognises that India can be the engine driving global trade, what they are recognising is the immense potential that exists in India,” she said.

She also reaffirmed Modi government’s focus on achieving ‘Viksit Bharat’ by 2047. “Prime Minister Narendra Modi has emphasised that it can be achieved by looking after the four main ‘castes’ — women, poor, youth and farmers. India’s focus is also on the ‘sunrise sectors’ which are important to build our capacities and areas such as Digital Public Infrastructure (DPI) where India has emerged as a global leader,” she stated.

Sitharaman is in US on an official visit. She is slated to deliver a keynote speech at Stanford University and engage with CEOs in San Francisco, fostering discussions on investment and technological advancements.  In Washington DC, Sitharaman is set to attend several high-level meetings, including those with the IMF and World Bank Spring Meetings, and the G20 Finance Ministers and Central Bank Governors. She will also hold bilateral talks with her counterparts from multiple nations.

Published on April 21, 2025