The first tranche of India's bilateral trade agreement with the United States is "almost finalised," with both sides now working out the mechanism to secure preferential market access for Indian goods in the American market, Commerce and Industry Minister Piyush Goyal said at an even in New Delhi on Monday.
The statement came as a fresh round of negotiations opened in Washington the same day.
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An Indian delegation of around a dozen officials, led by chief negotiator Darpan Jain, began a three-day engagement with US counterparts in Washington. This is the first formal engagement since February's planned talks were deferred, with officials from India's commerce, customs, and external affairs ministries part of the visiting team.
Meanwhile, ahead of the trade talks, Foreign Secretary Vikram Misri had engaged with US officials in Washington, reviewing what he described as the “full spectrum of the India-US relationship."
As Misri put it, the discussions span “trade, technology, defence and strategic coordination," reflecting how economic negotiations are now closely tied to wider strategic priorities. This backdrop gives the current round of talks added weight, with both sides looking to convert political momentum into tangible progress.
The context for Goyal's remarks is significant. The original BTA framework, unveiled on Feb. 7, envisioned reducing US tariffs on Indian goods from as high as 50% to 18%, and also included the removal of a 25% penalty tariff linked to India's purchase of Russian crude oil.
That February framework was widely celebrated as a diplomatic breakthrough, reached during Prime Minister Narendra Modi's visit to Washington.
However, the deal has yet to be formally signed. A US Supreme Court ruling subsequently struck down the sweeping "reciprocal tariffs" introduced under the International Emergency Economic Powers Act, following which the Trump administration imposed a flat 10% tariff on all countries for 150 days starting Feb. 24.
That reshaped the global trade landscape and eroded the preferential advantages India had been negotiating under the earlier framework.
Complicating the talks further are two ongoing cases, including Section 301 investigations, launched by the US Trade Representative on March 12, covering 60 economies including India and China, probing alleged failures to ban goods produced with forced labour.
Moreover, India has also committed to purchasing up to $500 billion worth of US goods over five years, including energy, aircraft and technology. Adding urgency to the talks is a broader shift in trade dynamics: China has overtaken the US to become India's largest trading partner in 2025-26, ending a four-year streak during which the US held the top position.
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Meanwhile, Goyal earlier said, "Our approach is that India should get preferential market access," Adding that India is in a "very sweet spot" compared to other emerging and developing economies in its trade engagement with the US.
Despite the complications, Goyal's confidence on Monday signals New Delhi believes a deal remains within reach - and on favourable terms.
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