Goyal, Greer review interim trade agreement as India-US race against tariff deadline

India and the United States reviewed the progress on an interim bilateral trade agreement during the two-day ministerial meeting that concluded in New Delhi on 24 June.

The two sides discussed trade ageeement elements, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers, and expanded cooperation in strategic sectors, the government said in a statement without any indication that all differences were resolved ahead of a key tariff deadline next month.

Commerce and Industry Minister Piyush Goyal and visiting US Trade Representative Jamieson Greer held discussions on the first phase of a proposed bilateral trade agreement (BTA), which both sides have been negotiating since reaching a framework understanding earlier this year.

"The two ministers conducted a "comprehensive review" of key elements of the proposed pact, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers and cooperation in strategic sectors," the Commerce Ministry said in a statement at the conclusion of talks on Wednesday.

The ministry said both countries discussed pathways to conclude an interim agreement and reaffirmed their commitment to a deal that is "balanced and commercially meaningful".

Greer's June 22-24 visit comes at a time when New Delhi and Washington race to finalise an interim arrangement before the expiration of a temporary 10 per cent US tariff regime on July 24, a deadline that has added urgency to negotiations.

While the statement said 'substantial' progress has been made, the two sides did not say if outstanding issues had been resolved.

"Discussions focused on pathways to conclude an interim agreement as an important milestone toward a comprehensive BTA," the ministry said, adding that the two ministers reaffirmed their commitment to a trade agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries.

"Recognizing the growing significance of the India-US economic partnership amid evolving global trade dynamics, both sides reiterated their shared goal of expanding bilateral trade, fostering innovation, and building resilient, trusted supply chains," it added.

‘Very close’ to concluding a historic bilateral trade deal: US Official

The United States and India are ‘very, very close’ to concluding a historic bilateral trade deal that will open the 1.4 billion-strong Indian market to American goods on reciprocal and mutually beneficial terms, a senior US official was quoted as saying by news agency PTI.

Addressing an event at the Capitol Hill organised by the Foundation for India and Indian Diaspora Studies (FIIDS) on Tuesday, US Deputy Assistant Secretary of State Bethany Poulos Morrison said Prime Minister Narendra Modi and US President Donald Trump were advancing a ‘result-oriented’ relationship.

"We're not measuring (the relationship) by meeting. We're measuring it by results," she said, referring to the trade negotiations launched following the understanding reached between Trump and Modi earlier this year.

What Piyush Goyal said?

Earlier in the day, Goyal said in a social media post that the two sides reviewed the progress of the ongoing India-US trade discussions.

"I appreciate Ambassador Greer's leadership and the sustained efforts of both teams in advancing our discussions in a constructive and forward-looking manner," Goyal said in a post on X.

The USTR said that India has a long history of agriculture and manufacturing, and they are moving forward in technology.

"They want to move forward in AI. They want to cooperate and collaborate with the United States on the technologies of the future and trade of the future. And that's some of the exciting opportunities that we'll have between the United States and India is to capitalise on that," he said.

Greer added that President Donald Trump and Prime Minister Narendra Modi have an "amazing" relationship that they have nurtured over many years.

"Just last week, they met at G7 in Evian, France, and I was there, and they agreed to take the relationship to the next level. This includes the trade deal that we're working on, but it includes every aspect of the relationship, and we expect the relationship to continue developing and only going to a higher and higher level with every passing week," he added.

The two countries aim to salvage and recalibrate the proposed agreement after changes in the US tariff policy upended a framework deal finalised earlier this year.

Greer's visit followed Prime Minister Narendra Modi and US President Donald Trump's first meeting in more than a year on the sidelines of the G7 summit in France on June 17, injecting fresh momentum into trade negotiations that both sides see as critical to strengthening economic ties.

The ministerial-level meeting follows chief negotiator-level discussions held in New Delhi earlier this month (June 2-4).

India and the US formally launched BTA negotiations on February 13, 2025. Meanwhile, to retain bargaining leverage, the US Trade Representative launched two Section 301 investigations on March 11 and 12, covering about 60 economies.

One focused on alleged excess industrial capacity, while the other examined forced-labour concerns in global supply chains. India was included in both investigations.

US is India's second-largest trading partner in 25-26

After expiry of the temporary tariff, the US has only this mechanism (Section 301 probes) to impose tariffs of any magnitude on its trading partners, including India.

In February this year, the two sides announced the contours of the first phase. It was based on the 50 per cent tariffs imposed by the US on Indian goods.

However, on February 20, the US Supreme Court struck down these sweeping tariffs. It forced the Trump administration to impose 10 per cent tariffs under Section 122 of the Trade Act on all countries for 150 days from February 24. It will expire on July 24 this year.

The US was the second-largest trading partner of India in 2025-26.

India's outbound shipments to the US grew marginally by 0.92 per cent to $ 87.3 billion during the last fiscal year despite high tariffs, while imports increased 15.95 per cent to $52.9 billion. The trade surplus declined to $34.4 billion in 2025-26 from $40.89 billion in 2024-25.

(With PTI inputs)