India and US Aim to Seal First Tranche of Trade Deal Before 2025: Piyush Goyal

India’s Union Commerce and Industry Minister Piyush Goyal recently held discussions with US Commerce Secretary Howard Lutnick, aiming to fast-track the first tranche of the much-anticipated India-US Bilateral Trade Agreement (BTA).

Efforts to Conclude the Pact Before Fall 2025

The two countries are working towards signing the initial phase of the agreement well before the originally agreed deadline of fall 2025. With the terms of reference already finalized, momentum is building to move forward swiftly.

“Good discussions with Secretary @Howard Lutnick towards expediting the first tranche of the India-US Bilateral Trade Agreement,” Goyal posted on the X social media platform.

India’s Strong Case for a Trade Deal

Earlier, Union Commerce and Industry Minister Piyush Goyal noted the strong economic outlook of India as a key factor in convincing the US to pursue the deal:

“Looking at the growth India offers in the next 25-30 years, with a large, aspirational, young population who will add to the demand for goods and services, we believe India will be a compelling case for entering into a good agreement with the US,” Goyal had told reporters.

Trade Deal to Boost Bilateral Commerce

If tariff reduction is achieved in the first tranche, it is expected to lead to a significant increase in trade volumes between India and the US. In a joint statement made during Prime Minister Narendra Modi’s visit to Washington, both PM Modi and President Donald Trump reaffirmed a mutual goal:

The US and India aim to reach $500 billion in bilateral trade by 2030.

Statements from Trump and Jaishankar on Trade Negotiations

Recently, Donald Trump claimed:

“India offered to remove all tariffs on American goods,”

However, he added that he was in no rush to finalize the agreement, suggesting the breakthrough still needs broader consensus.

On the Indian side, External Affairs Minister S. Jaishankar addressed the complexity of the talks:

“Trade talks between India and the US have been ongoing. These are complicated negotiations. Nothing is decided until everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature,” EAM Jaishankar said while speaking to reporters.

Conclusion

India and the US are intensifying efforts to finalize the first tranche of the Bilateral Trade Agreement well before the 2025 deadline, with Commerce Minister Piyush Goyal and US Secretary Howard Lutnick leading the charge. The agreement’s primary goal is to reduce tariffs and stimulate trade between the two economies.

India's compelling growth prospects and youthful consumer base provide strong grounds for a mutually beneficial agreement. While former US President Donald Trump highlighted India’s willingness to eliminate tariffs on American products, he also indicated a cautious approach to concluding the deal.

External Affairs Minister S. Jaishankar reiterated that such negotiations are inherently complex and must benefit both nations equally. The India-US goal of achieving $500 billion in bilateral trade by 2030 underscores the high stakes involved. As negotiations progress, both nations seem optimistic about securing a deal that will enhance economic cooperation and trade flow across key sectors.