Union Minister of Commerce and Industry Piyush Goyal recently met with U.S. Secretary of Commerce Howard Lutnick to explore the potential for a mutually beneficial trade agreement between India and the United States. The discussion centered on strengthening economic ties and identifying new areas for collaboration in trade and investment.
Following the meeting, Goyal shared on social media, “Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people..
According to sources cited by ANI, the two countries are aiming to finalize the first phase of a much-anticipated Bilateral Trade Agreement (BTA) before July. A recent round of talks with the United States Trade Representative has already been completed, covering a range of issues related to goods and services trade.
India has emphasized its interest in securing better market access for labor-intensive exports such as leather and textiles, while service sector concerns have also featured prominently in discussions. “We want to increase our exports and preserve what we are already exporting,” a source close to the negotiations said, calling the potential agreement a “win-win” for both sides.
However, India continues to safeguard its sensitive sectors, particularly agriculture and dairy. A key demand from New Delhi is a full exemption from the 26% tariff currently applied to certain goods. Sources also noted that talks are progressing positively and that both sides aim to conclude the agreement before the U.S. deadline of July 8.
The agreement is expected to mark a significant step in India-U.S. economic relations, potentially opening new channels for bilateral trade and investment. The U.S. has remained India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade reaching USD 131.84 billion and India enjoying a goods trade surplus of USD 41.18 billion.
The push for deeper trade ties was also evident during the February meeting between President Donald Trump and Prime Minister Narendra Modi, where the leaders committed to boosting economic engagement. They unveiled “Mission 500,” a shared vision to more than double bilateral trade to USD 500 billion by 2030, aiming to enhance prosperity, innovation, and supply chain resilience.
Beyond the U.S., India is also advancing trade talks with the European Union. Sources indicate that negotiations are progressing quickly, with both sides hopeful of concluding an early harvest trade agreement within the year.
