India and the United States have almost finalized the first part of their new trade agreement, India's Commerce Minister Piyush Goyal said on Tuesday, as delegations began talks in New Delhi.
US Delegation in New Delhi
A US delegation led by Assistant US Trade Representative for South and Central Asia Brendan Lynch arrived in India on Monday for a three-day visit. The talks come four months after the two countries formally initiated negotiations.
Goyal told reporters that the first phase of the Bilateral Trade Agreement (BTA) is nearly ready. "US Ambassador Sergio Gor said that 99 percent of the things have been finalized. Discussions are going on about small issues — commas and full stops," he said, expressing confidence that they would "conclude the first tranche of the BTA as soon as possible, sign it and start further discussions on how to have a more comprehensive BTA."
Framework for Interim Trade Deal
In early February, India and the US released a framework for an interim trade agreement. Under this, US reciprocal tariffs on Indian goods were set at 18 percent, while India agreed to eliminate or reduce tariffs on all American industrial goods and a wide range of food and agricultural products.
The framework emerged six months after US President Donald Trump accused India of funding Moscow's war in Ukraine by purchasing Russian oil, leading to 50 percent tariffs on most Indian exports. Negotiations slowed after the US Supreme Court struck down Trump's tariff policies a few weeks later.
Legal Changes Under Review
Goyal noted that during the current talks, negotiators would examine how these legal changes in the US will be "reflected in the final agreement, and what kind of changes will be made accordingly."
US Announces $500 Billion Purchase Commitment
Ahead of the delegation's arrival, US Secretary of State Marco Rubio announced on social media that India had "committed to purchasing $500 billion in US goods over the next five years, focusing on energy, technology, and agriculture." Indian officials have not commented on this statement.
According to data from the US Trade Representative, India imported approximately $45.6 billion worth of American goods in 2025.
