India And US Move Closer To First Phase Of Bilateral Trade Agreement

India and the United States appear to be edging closer to finalising the initial tranche of the proposed Bilateral Trade Agreement (BTA), according to Commerce Secretary Rajesh Agrawal.

Speaking in New Delhi on Monday, Agrawal confirmed that regular virtual discussions between the two nations have resulted in steady advancement, although he cautioned that no formal timeline has been fixed. He noted that the first stage of negotiations is ‘progressing swiftly’, raising hopes of an early breakthrough.

The two democracies expect the BTA to enhance trade cooperation, with both sides identifying priority areas for the first tranche.

Fresh optimism surfaced last week after US President Donald Trump expressed confidence in the trajectory of India–US relations.

He told reporters at the White House that his engagement with Prime Minister Narendra Modi was ‘going great’ and hinted at a possible visit to New Delhi next year.

Trump reiterated his willingness to ‘lower tariffs’ on Indian goods at some point, suggesting that trade discussions could reach a favourable milestone soon.

During the swearing-in ceremony of Sergio Gor as the new US Ambassador to India, Trump emphasised, “I think we’re pretty close to doing a deal that’s good for everybody.”

India Stresses Protection of Key Sectors

Despite the optimism, India has underlined its intention to safeguard domestic interests. Commerce Minister Piyush Goyal said on Tuesday that India would not compromise on protecting farmers, the dairy sector, or workers when entering trade agreements.

“We are working on a fair, equitable and balanced trade deal,” he said, adding that the timing of the agreement would depend on mutual readiness.

Goyal highlighted that the government remains prepared for various scenarios, acknowledging that the deal could materialise ‘tomorrow, next month or next year’.

India has already increased purchases of American oil and gas as part of efforts to reduce its trade surplus with the US, an issue previously raised in bilateral talks.

In a significant development, Petroleum Minister Hardeep Singh Puri announced that public sector oil firms have finalised a one-year structured contract to import around 2.2 million tonnes of LPG annually from the US Gulf Coast starting in 2026.

This accounts for nearly 10 per cent of India’s LPG imports and marks the first structured LPG contract for the Indian market. Puri hailed the agreement as a ‘historic development’, signalling deeper energy cooperation between the two nations as broader trade negotiations continue.

Also Read: PM Modi Hails India’s Record-Breaking Medal Haul At Asian Archery Championships