India-US Bilateral Trade Agreement: Piyush Goyal reveals what US should announce to finalize deal

The details of the Bilateral Trade Agreement (BTA) with the US will be announced once Washington offers preferential terms compared to India's competitors, said Commerce and Industry Minister Piyush Goyal on Thursday.

"As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details," Goyal said during a workshop focused on free trade agreements, reported PTI.

He emphasized that the free trade agreements already secured by India present substantial export opportunities for domestic enterprises.

According to the report, Goyal added that India is on track to formalize additional trade pacts in the near future with Canada, Mexico, Chile, Mercosur (a Brazil-led bloc), SACU (the Southern African Customs Union), the GCC (Gulf Cooperation Council, comprising six Middle Eastern nations) and Israel.

The minister clarified that the initial phase of the India-US BTA will take effect once the US guarantees India a comparative advantage over competing nations.

Ongoing negotiations for a BTA between New Delhi and Washington have seen some shifts.

While both countries announced the completion of the framework for the pact's first phase in February, recent adjustments to US tariff policy have necessitated further discussions. Notably, the US levied an extra 10% tariff on several countries, including India, starting 24 July.

India faces steep competition in the US market from nations such as Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia. Securing a tariff advantage over these countries would grant Indian exports critical price competitiveness in the American market.

Exporters flag concerns amid tariff uncertainty

On Tuesday, an official said that the commerce ministry has asked industry representatives and exporters to outline their concerns about US market access, so these issues can be raised with American authorities.

The meeting's objective was to review recent trade patterns, the sector-by-sector performance of India-US commerce, and the latest bilateral trade developments.

As reported by PTI, representatives of export promotion councils presented relevant data and discussed their respective sectors' performance. They also urged the ministry to finalize the US trade pact swiftly to minimize tariff-related uncertainties.

One exporter told PTI that while US order books appear stable, the overall volume has shrunk. Due to the ongoing tariff ambiguity, American buyers hesitate to place large or long-term orders and are increasingly diversifying their import sources.

Additionally, industry members highlighted concerns over US safeguard measures on quartz surface products, pressing the commerce ministry to address this issue with Washington.

Importance of these deliberations

These discussions hold significant weight as Goyal prepares to visit the US in late September. He is scheduled to attend the G-20 Trade Ministerial in Milwaukee and engage in bilateral talks with US Trade Representative Jamieson Greer. Following the two-day ministerial starting 30 September, Goyal is expected to lead a business delegation to Chicago next month.

India-US trade in numbers

Key Indian exports to the US include electrical machinery, telecom instruments (such as smartphones), generic pharmaceuticals, diamonds, industrial boilers and cotton textiles. Conversely, India imports crude petroleum, liquefied natural gas, coal, precious stones, electronics and aerospace equipment from the US.

In the 2025-26 fiscal year, India's exports to the US grew marginally, reaching $87.31 billion, up from $86.51 billion the previous year. Meanwhile, imports surged by 17.16% to $53.45 billion, up from $45.62 billion in 2024-25.

Overall bilateral trade expanded by 6.53% to $140.76 billion in 2025-26, compared to $132.2 billion in 2024-25. India maintained a trade surplus of $33.9 billion in the last fiscal year, down from $40.9 billion in 2024-25.

More recently, between April and July of the 2026-27 fiscal year, India's exports to the US climbed 3% to $34.5 billion, and imports jumped 22.42% to $22.12 billion.

(With inputs from PTI)