NEW DELHI: A high-level Indian delegation from the Commerce Ministry has arrived in Washington this week for a fresh round of negotiations on the long-anticipated Bilateral Trade Agreement (BTA) with the United States. The four-day dialogue, which began on Monday, is expected to cover several sensitive sectors, with both countries aiming to finalize an interim pact before the U.S. deadline of August 1.
According to official sources, India’s chief negotiator and Special Secretary in the Department of Commerce, Rajesh Agrawal, will join the talks on Wednesday, adding momentum to the ongoing discussions. India’s deputy chief negotiator is already in Washington and is leading the initial phase of deliberations focused on finalizing the first tranche of the proposed agreement.
This round of discussions holds particular significance as it follows weeks of back-and-forth engagement and comes amid a temporary U.S. suspension of additional tariffs on key trading partners, including India. The window before August 1 is crucial, with both sides seeking to resolve long-standing differences in sectors like agriculture, dairy, automobiles, and industrial goods.
Speaking on the sidelines of the talks, an Indian official indicated that while the dialogue is centered around a comprehensive trade deal, any agreements that are finalized could be packaged as an interim deal. “We are not distinguishing between an interim or first phase deal. Our objective is a complete BTA. Whatever is concluded first, we will package it accordingly and continue negotiations on the remaining issues,” the official explained.
The negotiations are expected to cover a wide range of contentious items. India has firmly resisted U.S. demands for duty concessions on agricultural and dairy products, especially considering that New Delhi has historically excluded dairy from similar concessions in past free trade agreements. The U.S., on its part, is pushing for greater market access for dairy products, genetically modified crops, tree nuts, apples, electric vehicles, wines, and petrochemicals.
India is seeking tariff relief on several fronts, including a 26% additional duty the U.S. has imposed on certain products, as well as steep tariffs on steel (50%), aluminium, and automobiles (25%). New Delhi has retained its right under World Trade Organization (WTO) provisions to impose retaliatory tariffs if necessary, although both sides appear eager to avoid an escalation.
The current talks follow a previous round of negotiations held from June 26 to July 2 in Washington, underscoring the fast-paced nature of the effort to secure an agreement ahead of the looming tariff deadline. An official familiar with the matter stated, “We are doing our job. How the BTA progresses—whether in phases or a comprehensive package—will be decided mutually.”
India is also pushing for greater duty concessions from the U.S. on labour-intensive sectors including textiles, gems and jewellery, leather, garments, plastics, chemicals, shrimp, oilseeds, and certain fruits like grapes and bananas. These sectors are key to India’s export economy and job creation.
Meanwhile, India’s merchandise exports to the U.S. have surged, rising by 21.78% to $17.25 billion in April-May of the current fiscal year. Imports from the U.S. also climbed by 25.8%, reaching $8.87 billion, reflecting strong trade momentum between the two countries.
While U.S. President Donald Trump’s earlier tariff announcement on several countries—including India—raised alarm bells, the postponement of these measures to August 1 has given negotiators a critical window to finalize agreements and avoid punitive actions.
As trade teams from both nations continue their high-stakes discussions in Washington, expectations are cautiously optimistic. Both sides appear willing to move forward on a “win-win” framework, with the aim of concluding at least the first phase of the BTA by September or October this year.
