Union Commerce and Industry Minister Piyush Goyal on Thursday indicated that India will move ahead with its proposed Bilateral Trade Agreement (BTA) with the United States only after securing tariff terms that offer Indian exporters an advantage over competing nations.
Speaking at a national workshop on leveraging Free Trade Agreements (FTAs), Goyal said the government is focused on ensuring that Indian goods receive better market access in the US compared to rival exporting countries.
“As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details,” Goyal said.
His remarks come even as US Ambassador to India Sergio Gor recently stated that the long-awaited India-US trade pact is in its final stages and is largely complete in principle. However, both sides continue discussions on tariff structures and market access issues.
Tariffs Continue To Be A Key Issue
India and the United States had earlier agreed on a framework for the first phase of the trade agreement in February. Since then, changes in the US tariff regime and additional duties imposed on several countries, including India, have led to further negotiations.
Government officials believe that securing favourable tariff rates is crucial, particularly because India competes with countries such as Vietnam, Bangladesh, Sri Lanka, Thailand, Indonesia, Malaysia and Cambodia in the American market. Lower duties could improve the competitiveness of Indian products and boost exports.
India Expands Global Trade Footprint
Highlighting India’s broader trade strategy, Goyal said the country has already concluded nine Free Trade Agreements covering economies with a combined GDP of nearly USD 60 trillion. According to him, these agreements will provide India with preferential access to almost two-thirds of global trade.
He added that trade agreements with New Zealand and the European Union are expected to move forward in the coming period, further strengthening India’s international trade network.
Goyal To Hold Talks In US
The Commerce Minister is expected to travel to the United States later this month to participate in the G20 Trade Ministerial meeting in Milwaukee. During the visit, he is also likely to hold discussions with US Trade Representative Jamieson Greer, with the proposed India-US trade agreement expected to be a major agenda item.
Trade ties between the two countries continue to grow steadily. In 2025, India’s goods exports to the US stood at USD 103.82 billion, while imports from America were valued at around USD 45.6 billion, taking total bilateral goods trade close to USD 149.42 billion.
The outcome of the ongoing negotiations is expected to play a significant role in shaping the future of economic relations between the world’s two largest democracies.
