Bilateral Trade Talks Aim to Boost Economic Cooperation and Target $500 Billion by 2030
India and the United States are poised to initiate a significant round of trade discussions in Washington starting April 23, marking the latest development in their ongoing negotiations toward a landmark Bilateral Trade Agreement (BTA). The discussions, which are expected to span three days, will focus on the finalization of a 19-chapter trade pact aimed at enhancing economic ties between the two nations.
The upcoming trade talks will be led by Rajesh Agrawal, India’s Additional Secretary in the Ministry of Commerce and Industry, who is slated to assume the role of commerce secretary in October 2025. This delegation is expected to continue where earlier discussions left off, following the March visit to India by Brendan Lynch, the Assistant US Trade Representative for South and Central Asia. These talks are seen as crucial in setting the foundation for a potential trade agreement that could more than double the trade volume between the two nations.
Highlights:
India and the US aim to conclude the first phase of the trade pact by fall 2025
Target set to raise bilateral trade to $500 billion by 2030, up from $191 billion currently
High-level delegation led by Rajesh Agrawal will begin talks in Washington on April 23
Structure of the Trade Pact: Focus on Goods, Services, Investments, and Customs Procedures
The proposed 19-chapter trade pact is expected to cover a broad spectrum of economic sectors, including trade in goods, services, investments, and customs procedures. These chapters are designed to address the diverse needs of both countries, paving the way for smoother bilateral trade flows, tariff reductions, and expanded market access.
For the US, the primary focus will be on gaining greater market access for products such as electric vehicles, certain industrial goods, dairy, wines, petrochemicals, apples, alfalfa hay, and tree nuts. Meanwhile, India will seek greater concessions in labor-intensive sectors such as textiles, apparel, leather goods, chemicals, plastics, shrimp, oilseeds, and horticultural products. This mutual exchange of market access and tariff reductions is expected to drive increased trade flows between the two nations.
Highlights:
19-chapter trade pact to cover trade in goods, services, investments, and customs procedures
US seeks access to electric vehicles, dairy, and industrial goods, while India targets labor-intensive sectors like textiles and shrimp
Tariff reductions are a central focus of the negotiations
Growing Momentum in Bilateral Relations as Trade Deficit and Surplus Concerns Persist
The United States has remained India’s top trading partner since the 2021-22 fiscal year, with the trade volume between the two countries reaching $191 billion in 2024-25. Notably, India recorded a goods trade surplus of $41.18 billion with the US during this period, a significant increase from the previous years. This growing surplus, however, has raised concerns in Washington, particularly regarding the imbalance in the trade of goods.
In response to this imbalance, the Trump administration introduced new tariffs in April 2025, including a 26% duty on Indian exports. These measures, which were temporarily paused until July 9, 2025, have provided a window for both countries to negotiate and resolve these trade issues in a way that is mutually beneficial.
Highlights:
India recorded a goods trade surplus of $41.18 billion with the US in FY 2024-25
Growing trade imbalance between the two nations has raised concerns in Washington
New US tariffs on Indian exports temporarily paused to allow for trade negotiations
Path Forward: Aiming for a Landmark Trade Deal by Fall 2025
With talks gaining momentum, the upcoming discussions in Washington are expected to address some of the most critical issues standing in the way of the trade agreement’s finalization. The broader goal is to reach a comprehensive deal that resolves outstanding tariff disputes, expands market access for key Indian and American products, and sets the stage for further economic collaboration.
The discussions are also seen as part of a broader strategic effort to strengthen India-US economic ties in the face of increasing global trade uncertainties and geopolitical tensions. As India seeks greater access to US markets and the US pushes for fairer trade terms, the negotiations are set to play a crucial role in shaping the future of bilateral economic cooperation.
Highlights:
Talks in Washington expected to resolve key trade issues and finalize the pact
Both nations aim to finalize the first phase of the trade agreement by fall 2025
The trade deal is expected to boost India-US economic ties amidst global trade challenges
