India and the United States are “very near” to finalising the first tranche of the Bilateral Trade Agreement (BTA), a senior government official confirmed on Friday. Both sides are said to be aligning on most key issues, with negotiators now working on finalising the language of the agreement.
The official noted that only minor differences remain and that talks are progressing smoothly without any new obstacles. Negotiators from both countries held a virtual discussion on Thursday, the fifth round since March, as part of efforts to conclude the first phase of the BTA, initially targeted for signing by the fall of 2025.
Proposed in February under the directives of the two nations’ leaders, the BTA seeks to more than double bilateral trade from USD 191 billion to USD 500 billion by 2030. Last month, Commerce and Industry Minister Piyush Goyal led a high-level Indian delegation to the United States to advance discussions. The team included Special Secretary and India’s Chief Negotiator Rajesh Agrawal.
Earlier in September, a US delegation headed by Assistant US Trade Representative for South and Central Asia Brendan Lynch held “positive and forward-looking” talks with Indian officials, resolving to intensify efforts for an early, mutually beneficial conclusion.
Negotiations for an interim trade deal have encountered some resistance, particularly in the agricultural and dairy sector access areas crucial to India’s rural economy. These concerns follow past trade tensions, including tariffs of up to 50% imposed by former US President Donald Trump on Indian goods in August, citing trade imbalances and continued Russian oil imports.
Both sides now appear determined to move past earlier friction, aiming to seal a balanced, growth-oriented agreement that strengthens economic ties and sets the stage for expanded strategic cooperation.