India and US Finalize Framework for Bilateral Trade Deal Ahead of High-Level Talks:

India and the US have come to terms on a comprehensive framework of a Bilateral Trade Agreement (BTA) with the vision of strengthening economic relations and increasing the trade volume to USD 1 trillion by the year 2030. The agreement will consist of 19 chapters, including trade in goods and services, investments, and customs.

Indian Delegation to Commence Three-Day Meeting in Washington

Undersecretary Rajesh Agrawal will lead a high-powered Indian delegation to Washington for a new round of sessions from Wednesday, April 23 for three days. It is reported that he will become the next Secretary of Commerce of India on October 1.

These negotiations stem from the most recent rounds of diplomacy, including a March trip to India by Brendan Lynch, the assistant US trade representative for South and Central Asia. Both sides perceive these sessions as pivotal for meeting one of the targets with the initial target date slated for September-October 2025.

A Compilation of Trade Specific Targets and Market Access Requests

We expect the agreement to provide for bilateral reduction of tariffs. The United States is interested in greater market access for exports which includes:

Electric Vehicles
Industrial Products
Wines and other dairy products
Apples and tree nuts
Alfalfa Hay and Petrochemicals

On the flipside, India wants concession, for more labor-intensive items such as:

Clothing and Textile
Leather Articles
Jewels and Precious Stones
Chemicals and Plastics Shrimp
Horticulture and Oil Seeds

Growing Trade, but Concern Over Imbalance
From 2021 to 2025 India was the top trading partner for the US, In FY 2024 2025 India had a recorded trade surplus of $41.18 billion with the US, which is an increase from $35.32 billion the year before. The escalating trade imbalance is a source of concern for lawmakers in Washington.

as a response, Trump’s administration brought additional tariffs into effect on April 2 which included 26 percent on more select Indian goods. These measures are to remain on hold till July 9 for the sake of negotiations.

Looking Towards: The 500 Billion mark
More than two-fold target for the future is to increase bilateral trade to 500 billion dollars by the year 2030 from 191 billion dollars. The upcoming talks in Washington are expected to reach agreement on trade deal and unlock exciting opportunities.