India&ndash;US Trade Pact Gains Momentum as Goyal Signals Imminent Breakthrough
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India and the United States appear to be inching closer to formalising the first phase of a long-anticipated Bilateral Trade Agreement (BTA), with signals emerging from Union Commerce and Industry Minister Piyush Goyal&rsquo;s latest remarks following his engagement with US Commerce Secretary Howard Lutnick.
In a social media post on Thursday, Goyal described his meeting with Secretary Lutnick as "constructive", underscoring the mutual commitment to finalise a deal that would enhance commercial opportunities for businesses and citizens in both nations. This follows a week of accelerated engagement, including earlier discussions aimed at expediting the first tranche of the agreement.
The momentum builds on the groundwork laid during Prime Minister Narendra Modi&rsquo;s Washington visit earlier this year, where he and President Donald Trump articulated a shared ambition to expand bilateral trade to $500 billion by 2030. This target, dubbed &ldquo;Mission 500&rdquo;, reflects both countries&rsquo; intent to anchor their economic partnership in a rules-based, resilient framework.
Trade between India and the US reached $131.84 billion in FY 2024&ndash;25, with India maintaining a goods trade surplus of $41.18 billion. The US remained India&rsquo;s largest trading partner for the fourth year running, exporting $41.8 billion worth of goods to India while importing $87.4 billion. The persistent trade imbalance&mdash;amounting to $45.7 billion&mdash;remains a sticking point for Washington, which has long called for a level playing field.
While both governments are eager to conclude the first tranche of the BTA by July, negotiations remain delicate. India is seeking tariff concessions for labour-intensive sectors such as leather and textiles, while preserving safeguards for sensitive areas like agriculture and dairy. A key demand from New Delhi includes the removal of a 26% tariff on select exports.
Beyond goods, services trade and investment flows have featured prominently in the discussions. India is positioning itself as a vital long-term partner, given its youthful demography, expanding consumer base, and structural growth potential. Goyal reiterated that India's demographic dividend and rising demand present a compelling case for deepened commercial engagement with the United States.
As discussions with the US progress, India is also advancing negotiations with the European Union, hinting at a broader strategy to diversify trade ties and secure favourable market access amid shifting global supply chains.
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Union Commerce and Industry Minister Piyush Goyal and US Commerce Secretary Howard Lutnick

Commerce Minister Goyal hints at early breakthrough in key bilateral trade negotiations

India–US Near First Trade Pact, Goyal Signals Progress

Commerce Minister Goyal hints at early breakthrough in key bilateral trade negotiations

May 23, 2025 | 10:07 IST