India and the United States are set to negotiate a multi-sector Bilateral Trade Agreement (BTA) aimed at enhancing market access, reducing tariffs, and strengthening supply chain integration, Minister of State for Commerce and Industry Jitin Prasada informed Parliament on Tuesday.

In a written reply to the Lok Sabha, Prasada clarified that as of now, the US has not imposed any reciprocal tariffs on India. However, both nations are committed to addressing trade barriers and fostering a mutually beneficial economic partnership.

The development follows a US memorandum on reciprocal trade and tariffs issued on February 13, directing the Commerce Secretary and the US Trade Representative (USTR) to evaluate trade imbalances and suggest remedies.

During Prime Minister Narendra Modi’s recent visit to Washington, both sides reaffirmed their goal of more than doubling bilateral trade to $500 billion by 2030. The first phase of the BTA is expected to be finalized by fall 2025.

In 2023, total bilateral trade between India and the US stood at $190.08 billion, with India exporting $83.77 billion in goods and importing $40.12 billion, resulting in a trade surplus of $43.65 billion for India. The US remains India's largest trading partner, with significant exports in engineering goods ($17.62 billion), electronics ($10 billion), gems and jewellery ($9.9 billion), petroleum products ($5.83 billion), textiles ($4.7 billion), and marine products ($2.5 billion).

Commerce Secretary Sunil Barthwal recently informed a Parliamentary panel that negotiations on trade tariffs are ongoing, and no agreement has been reached yet. Meanwhile, India continues its efforts to expand trade partnerships through 13 Free Trade Agreements (FTAs) and 9 Preferential Trade Agreements (PTAs), alongside negotiations with the EU, the UK, and Oman.

India and the United States are set to negotiate a multi-sector Bilateral Trade Agreement (BTA) aimed at enhancing market access, reducing tariffs, and strengthening supply chain integration, Minister of State for Commerce and Industry Jitin Prasada informed Parliament on Tuesday.

In a written reply to the Lok Sabha, Prasada clarified that as of now, the US has not imposed any reciprocal tariffs on India. However, both nations are committed to addressing trade barriers and fostering a mutually beneficial economic partnership.

The development follows a US memorandum on reciprocal trade and tariffs issued on February 13, directing the Commerce Secretary and the US Trade Representative (USTR) to evaluate trade imbalances and suggest remedies.

During Prime Minister Narendra Modi’s recent visit to Washington, both sides reaffirmed their goal of more than doubling bilateral trade to $500 billion by 2030. The first phase of the BTA is expected to be finalized by fall 2025.

In 2023, total bilateral trade between India and the US stood at $190.08 billion, with India exporting $83.77 billion in goods and importing $40.12 billion, resulting in a trade surplus of $43.65 billion for India. The US remains India's largest trading partner, with significant exports in engineering goods ($17.62 billion), electronics ($10 billion), gems and jewellery ($9.9 billion), petroleum products ($5.83 billion), textiles ($4.7 billion), and marine products ($2.5 billion).

Commerce Secretary Sunil Barthwal recently informed a Parliamentary panel that negotiations on trade tariffs are ongoing, and no agreement has been reached yet. Meanwhile, India continues its efforts to expand trade partnerships through 13 Free Trade Agreements (FTAs) and 9 Preferential Trade Agreements (PTAs), alongside negotiations with the EU, the UK, and Oman.