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U.S. President Donald Trump and Prime Minister Narendra Modi, File
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India and the U.S. teams discussed issues pertaining to market access, digital trade, and customs facilitation during the week-long deliberations on the proposed bilateral trade agreement, an official said.
Also Read | U.S. remains India’s largest trading partner for fourth consecutive year in 2024 -25: Government data
According to the official, both sides agreed to continue negotiations to achieve an expeditious conclusion of the initial tranche of the BTA.
India and the U.S. are working towards negotiating the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall (September-October) 2025.
To advance the objective of concluding a comprehensive and forward-looking BTA, a US delegation led by Additional US Trade Representative visited India from June 4-10.
“During the visit, in-depth negotiations were held on various elements of the proposed BTA that among others included areas such as market access, SPS (sanitary and phyto-sanitary/TBT (technical barriers to trade), digital trade, customs and trade facilitation and legal framework,” the official said.
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The U.S. has a special interest in digital trade, and its digital services providers have often flagged restrictions on cross-border data flows and competition policy as a hindrance in operating in India.
The SPS deals with measures to protect human, animal and plant health from food-borne risks, animal or plant carried diseases and pests. The TBT deals with technical regulations, standards and procedures to comply with SPS.
The farm sector is the one that is covered by these regulations. Customs and trade facilitation involves streamlining the procedures and process in trade.
The negotiations held with the U.S. side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement including through achievement of early wins.
The visit of the U.S. official team was important as India and America are likely to agree on an interim trade agreement by the end of June, with New Delhi pushing for full exemption from the 26 per cent reciprocal tariff on domestic goods.
The U.S. has suspended the proposed tariffs till July 9. There are expectations that an interim trade deal could be finalised before that.
The U.S. remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion.
The U.S. accounts for about 18% of India’s total goods exports, 6.22% of imports, and 10.73% of the country’s total merchandise trade.
Published – June 11, 2025 06:53 am IST
