Piyush Goyal will visit Washington to advance India-US trade talks, aiming for an interim deal, tariff relief, and progress toward a broader bilateral trade agreement.

Union Commerce and Industry Minister Piyush Goyal will visit Washington from May 17 to 20, heading a delegation of senior Indian officials for talks with the United States on the proposed bilateral trade agreement (BTA). The visit is aimed at advancing the framework for a comprehensive trade deal between the two countries, with a focus on securing early outcomes in goods trade. This agreement has the potential to significantly boost the economies of both India and the US, creating new opportunities for businesses and consumers.

Focus on Interim Trade Deal and Tariff Pause

A key objective of the current round of talks is to work toward an interim trade arrangement that offers “early mutual wins” through selective market access and duty reductions. Chief negotiators from both sides will extend their discussions from May 19 to 22, focusing on market access, rules of origin, and non-tariff barriers.

The talks take place within a 90-day tariff pause period, a crucial window following the US decision to suspend an additional 26 percent tariff on Indian goods until July 9. This measure, announced on April 2, was intended to allow room for dialogue in response to India’s proposed retaliatory duties on certain US products. The baseline 10 percent tariff still remains in effect between both nations.

Sectors Under Negotiation

India is seeking tariff reductions on several labour-intensive sectors, including textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. These sectors are seen as crucial for boosting exports and supporting domestic employment.

Meanwhile, the United States is pushing for duty concessions in industrial goods, electric vehicles, wines, petrochemical products, dairy, and a range of agricultural items, including apples and tree nuts. The negotiations reflect the strategic interests of both sides, with India aiming to strengthen its position in labour-intensive sectors and the US seeking to expand its industrial and agricultural goods market. These negotiations aim to achieve balanced gains for both countries.

Broad Agreement Structure and Key Concerns

The bilateral trade agreement is structured around 19 chapters covering tariffs, goods, services, rules of origin, customs facilitation, and the removal of non-tariff barriers. The US has raised concerns about certain non-tariff practices that affect the flow of American goods into Indian markets. These matters are expected to feature prominently in the upcoming talks.

Strategic Context and Future Goals

This round of discussions follows US Vice President JD Vance’s visit to New Delhi last month. It is part of broader efforts to deepen trade ties between the two countries under President Donald Trump’s administration. The initiative also builds on commitments made during Prime Minister Narendra Modi’s US visit in February, where both nations agreed to finalise the first phase of the BTA by fall 2025.

With bilateral trade reaching $129 billion in 2024 and India maintaining a trade surplus of $45.7 billion, the two countries have set an ambitious target of expanding trade to $500 billion by 2030.