India and the United States are deepening talks on their proposed Bilateral Trade Agreement (BTA), aiming to finalize the first phase of the deal. Recent discussions took place in New Delhi, where US officials met with their Indian counterparts to address key issues such as customs procedures and trade facilitation.
Both nations are working towards establishing a mutually beneficial trade framework, with Indian officials expressing optimism about reaching an agreement. Despite changes in the US political landscape, negotiations are set to continue, highlighting the importance both countries place on strengthening economic ties.
However, trade experts note that uncertainty surrounding US tariff policies, particularly the use of tariffs as a negotiating tool, has stalled progress. Although an initial framework is in place, significant differences over preferential tariff arrangements remain unresolved. India is seeking competitive tariff benefits to ensure its exporters receive fair market access compared to businesses from other countries. In contrast, the US is keen on concluding the agreement swiftly.
A framework for an interim trade agreement was announced by the two countries on February 7. However, its finalization was delayed due to changes in the US tariff regime following a Supreme Court ruling that impacted the legal basis of the proposed preferential tariff mechanism.
The bilateral trade negotiations were initiated after a meeting between Indian Prime Minister Narendra Modi and then-US President Donald Trump in February 2025. Both nations aim to expand market access and create new opportunities for businesses through a fair and equitable trade partnership.