India-US Bilateral Trade Talks Resume in Washington as Key Issues Remain Unsettled

New Delhi, July 14, 2025 – A high-level Indian delegation has arrived in Washington to participate in a fresh round of negotiations on the proposed India-US Bilateral Trade Agreement (BTA), with discussions set to begin Monday and continue through Thursday.

This visit comes just weeks after an earlier round of talks held in Washington from June 26 to July 2. The Indian team has now returned to the US for another round of negotiations.

The four-day dialogue is a continuation of efforts to iron out critical differences across sectors such as agriculture, dairy, and automobiles. Chief Indian negotiator and Special Secretary in the Department of Commerce, Rajesh Agrawal, is scheduled to join the team mid-week on Wednesday, while India’s deputy chief negotiator is already in Washington to lead early discussions on the first phase of the deal.

Focus on Tariff Reductions and Market Access

This week’s talks carry extra weight, with the US once again delaying new tariffs on India and other countries now pushed to August 1. The fresh round of negotiations follows earlier discussions held in Washington between June 26 and July 2, showing both sides are keen to keep the momentum going and work through the pending issues.

India is seeking the removal of additional tariffs, including:

• 26% duty on key exports
• 50% tariffs on steel and aluminium
• 25% duties on automobiles

In contrast, the US is pressing India for duty concessions on a wide range of goods including:

• Industrial products
• Automobiles, particularly electric vehicles
• Wines and petrochemicals
• Agricultural goods like dairy products, apples, tree nuts, and genetically modified crops

India has taken a tough stand on dairy. So far, New Delhi hasn’t offered duty concessions on dairy products to any country under a trade deal, and that position isn’t changing.

India’s Trade Interests

India aims to secure tariff relaxations for its labour-intensive export sectors such as:

• Textiles and garments
• Gems and jewellery
• Leather goods and plastics
• Chemicals and shrimp
• Oil seeds, grapes, and bananas

The country is also asserting its right under WTO norms to impose retaliatory duties if negotiations do not yield favorable terms.

Path Toward an Interim Deal

Officials said the talks are aimed at a complete trade agreement. But if some parts are ready sooner, they may be bundled into an interim deal while the rest continue. “Whatever will be finished, we can package it as an interim deal, and for the rest, talks will continue,” one official stated.

Bilateral Trade Performance

India’s merchandise exports to the US surged by 21.78% to USD 17.25 billion in April–May of FY26, while imports from the US jumped 25.8% to USD 8.87 billion during the same period. This reflects robust momentum in trade ties, despite lingering policy frictions.

India and the US aim to conclude the first phase of the trade deal by September or October this year. What happens in this week’s talks could set the tone for one of India’s most significant trade ties in the years ahead.

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