India, US Near Interim Deal in Trade Talks; Focus on Tariff Cuts and Digital Rules

India and the United States made notable headway in the latest round of behind-closed-doors trade negotiations in New Delhi, officials confirmed. The discussions, held between June 4 and 10, aimed at deepening cooperation on tariff reductions, market access, and digital trade norms, forming the foundation for a long-anticipated Bilateral Trade Agreement (BTA).

“The negotiations held with the US side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement, including through achievement of early wins,” said a government official to PTI.

Key Negotiators and Discussion Focus

Who Attended?

The US delegation, led by the Additional US Trade Representative, met with Indian negotiators led by Rajesh Agrawal, India's chief trade representative.

Main Issues Discussed:

• Market access for industrial and agricultural products

• Tariff reduction strategies

• Non-tariff barrier removal

• Sanitary and phytosanitary (SPS) measures

• Technical barriers to trade (TBT)

• Digital trade concerns

• Customs facilitation

• Legal frameworks

Digital Trade & Cross-Border Data Flow: A US Priority

The US side placed a strong emphasis on resolving concerns related to cross-border data flow restrictions and competition regulations in India. American tech and service firms expressed the need for clear digital trade rules to ensure open digital market access.

India Pushes for Tariff Relief Ahead of July Deadline

India is lobbying for full exemption from the 26% reciprocal tariff on domestic exports. With the US having suspended these tariffs until July 9, Indian negotiators are pushing to clinch a limited interim agreement before that date.

Trade Milestones and Strategic Goals

• US was India’s top trading partner in FY 2024–25, with $131.84 billion in bilateral trade.

• Leaders from both nations—PM Modi and President Trump—had earlier committed to finalizing the BTA by fall 2025 and aimed to double trade volume to $500 billion by 2030.

Piyush Goyal Reaffirms India’s Openness in Switzerland

Speaking at a business meet in Bern, Switzerland, Union Commerce Minister Piyush Goyal emphasized India’s liberal investment climate:

"Total non-discrimination is guaranteed in India. If you come to India and invest, you become an Indian company,"
Goyal added, calling Free Trade Agreements "a very big medium to promote that investment."

Conclusion

India and the United States are steadily progressing toward a balanced and comprehensive bilateral trade agreement, signaling a new phase in their strategic economic partnership. Both countries are demonstrating a strong commitment to addressing longstanding issues, including tariff reductions and digital trade barriers.

With the July 9 deadline for suspended reciprocal tariffs fast approaching, an interim pact could serve as a significant breakthrough, helping to avoid renewed trade tensions. The agreement also comes at a time when the global trade landscape is rapidly evolving, with increasing emphasis on cross-border data governance, regulatory harmonization, and digital market access.

A successful conclusion would not only enhance bilateral trade but also set a benchmark for future global trade negotiations. Union Commerce Minister Piyush Goyal’s assurance of India’s non-discriminatory investment climate and emphasis on Free Trade Agreements as enablers of growth further highlights India’s readiness to deepen global partnerships and attract high-quality foreign investment through rule-based economic cooperation.