India-US Trade Agreement Gains Momentum Amid Global Realignment of Tariff Policies
India has stepped up its pitch for a bilateral trade agreement (BTA) with the United States, as global trade partners race to respond to the 90-day tariff moratorium announced by US President Donald Trump. Speaking in New Delhi at a joint press conference with Italy’s Deputy Prime Minister Antonio Tajani, Commerce Minister Piyush Goyal highlighted India’s long-term growth potential and demographic strength as key selling points in favor of a deal.
The proposed trade agreement is part of a broader initiative dubbed “Mission 500”, under which both nations aim to double bilateral trade to $500 billion by 2030. Goyal emphasized that India, with its large, young, and aspirational population, offers a sustained demand cycle that makes it a natural trade partner for the US.
Highlights:
Goyal says India provides a compelling long-term growth case for US partnership.
Mission 500 seeks to increase India-US trade to $500 billion by 2030.
India actively engaging with US during 90-day tariff pause.
India and US in Active BTA Talks as Global Trade Uncertainty Mounts
India’s call for a bilateral trade agreement with the United States comes at a time when trade uncertainty is mounting due to retaliatory tariff wars, particularly between the US and China. Goyal said India has emerged as one of the first countries to open detailed dialogue with the US, aimed at reaching a mutually beneficial BTA.
The minister underscored the complementarity between the two economies, saying that India and the US could jointly contribute to global welfare through trade synergies. Talks are reportedly centered around market access, technology transfer, and tariff structures, although no formal negotiation timeline has been disclosed.
Highlights:
India has already initiated early-stage discussions with the US on BTA framework.
Complementary economic strengths between both countries highlighted.
Dialogue seen as critical to leveraging current geopolitical trade opening.
EU-India FTA Moves Forward Despite Legacy Issues; Year-End Deal Still in Sight
On the separate front of the India-EU Free Trade Agreement (FTA), Goyal confirmed that discussions were progressing well, albeit slowly, due to several sensitive legacy issues. Negotiations were re-launched in June 2022, and both sides have agreed to target a 2025-end closure, with fresh momentum added following a commitment in February to accelerate talks.
Goyal acknowledged that if there were no contentious issues, the deal could have been concluded nearly two decades ago. However, both India and the EU are now actively working to resolve trade barriers, regulatory misalignments, and tariff concerns.
Highlights:
India-EU FTA back in focus, with both sides eyeing conclusion by 2025.
Sensitive issues remain, delaying faster resolution.
Goyal expresses optimism for deal by year-end despite challenges.
Italy Pledges Support for India-EU FTA, Urges Tariff Elimination for Stronger Global Trade
Italy’s Deputy Prime Minister Antonio Tajani reaffirmed his country’s support for the India-EU free trade deal, and emphasized that Rome was committed to reducing trade barriers and strengthening economic ties with India. He noted that Italy was proactively pushing within the EU framework to broker common ground between India and the bloc’s more protectionist members.
On the broader trade landscape, Tajani expressed concern over the proliferation of tariff regimes and stated that “zero-for-zero” duty policies were the optimal route to promote global commerce. Italy is also playing an active role in facilitating dialogue between the EU and the United States, especially in light of Trump’s 90-day tariff pause.
Highlights:
Italy backs India-EU FTA and commits to internal EU lobbying for smoother deal path.
Tajani supports zero-duty trade regime and is pushing for US-EU coordination.
Italy seeks enhanced cooperation between Indian and Italian firms.
China-US Trade Standoff Looms Large Over Global Negotiations, But India and EU Stay Neutral
While both Indian and Italian ministers refrained from direct comments on the escalating US-China trade confrontation, the developments cast a shadow over all ongoing global trade negotiations. Following Trump’s move to raise duties on Chinese goods to 145%, Beijing retaliated by increasing tariffs on US imports to 125% from 84%, triggering a fresh phase of economic brinkmanship.
Tajani stated that tariff escalation is a mistake, and reiterated the goal of achieving zero-duty reciprocity to promote stability and growth. Both Goyal and Tajani distanced themselves from the conflict, portraying it as a bilateral issue between the US and China, while reaffirming their countries’ focus on constructive trade expansion.
Highlights:
US-China tariff war intensifies with reciprocal hikes.
India and Italy decline to comment on China’s retaliation, stressing neutrality.
Global players push for de-escalation and rules-based trade revival.
