India, US working on Bilateral Trade Agreement first tranche: Sources

India-US Trade News: India and the US are working towards negotiating the first tranche of a mutually beneficial Bilateral Trade Agreement (BTA) by Fall 2025, sources told Zee Business. The second phase of the deal is set to cover a number of sectors. The development comes at a time when both sides are hopeful of reaching a consensus on tariff duty cuts in key sectors to finalise an interim deal before a July 9 deadline, which marks the imminent end to a 90-day pause on the Donald Trump administration’s 26 per cent reciprocal tariffs on Indian goods. 

Both sides want to negotiate and hammer out a trade agreement before that deadline. 

A US delagation visited India this month with an aim to advance the objective of concluding a comprehensive and forward-looking bilateral trade agreement.

The American delegation was led by senior officials from the Office of the United States Trade Representative (USTR). 

Officials from both sides engaged in in-depth talks and negotiations during this period, touching upon a vast range of areas including market access, SPS/TBT, digital trade, customs and trade facilitation, and legal framework, according to the sources. 

The talks were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement including through achievement of early wins, the sources said. 

India and the US agreed to continue negotiations to achieve an expeditious conclusion of the initial tranche of the BTA, they added. 

In April, officials from both sides engaged in talks in Washington DC, following bilateral discussions in the previous month. 

According to an official statement, those talks were fruitful, also ranging on a range of topics covering tariff and non-tariff matters.

The productive discussions are part of bilateral efforts in line with Leaders’ Statement of February 2025 to enhance and expand India-US economic ties and supply chain integration through the Bilateral Trade Agreement, said the Ministry of Commerce & Industry. 

ALSO READ: PM Modi speaks to Elon Musk, explores India-US collaboration in tech & innovation

In February, Prime Minister Narendra Modi and US President Trump agreed to conclude a bilateral trade pact by fall 2025 and more than double trade to $500 billion by 2030.

Meanwhile, India’s exports to the US jumped nearly 28 per cent on a year-on-year basis to $37.7 billion in the first four months of 2025.