Let's Talk About That Pending Bilateral Trade Agreement (BTA) Between India and the US!
US to host Indian negotiators for BTA discussions this month
India's trade negotiations squad is gearing up to pay a visit to the US, with the main agenda being to speed up the ongoing talks for the Bilateral Trade Agreement (BTA). The visiting team, led by Rajesh Agrawal, the additional secretary at the department of commerce, will be making their second trip to the US within two months.
Both countries are under pressure to finalize the first tranche of the agreement by fall, but insiders hint that an interim agreement might be reached even before July 9 to sidestep full tariffs. This rushes the two nations to reach an understanding before the deadline, granting India a reprieve from the 26% additional tariffs imposed by the US.
However, it's worth noting that the full first phase of the BTA won't be completed until September-October. The interim agreement would, therefore, offer some relief against the reciprocal tariffs that have been temporarily suspended.
The BTA, announced following a meeting between Prime Minister Narendra Modi and President Donald Trump on February 13, strives to boost bilateral trade from the current $200 billion to a staggering $500 billion by 2030. The terms of reference for the BTA had already been ironed out by March.
Exporters are eager for swift progress in the BTA negotiations given the current uncertainty. If the 90-day tariff lull expires without an agreement, their shipments to the US may face undesirable tariff disadvantages. So they're working hard to complete orders before the tariff hike kicks in.
This potential BTA, along with other measures taken by the US, could pave the way for improved reciprocity between the two economies and open fresh avenues for American and Indian goods. The negotiations are a crucial aspect of the broader India-US strategic partnership, which encompasses areas like military partnership, commerce, and technology collaboration. So keep your eyes peeled and your fingers crossed for a successful BTA deal!
References:
- Hindu Business Line. (2025, May 1). India and US focus on bilateral trade negotiators to meet soon to push BTA negotiations: Report
- Livemint. (2025, April 21). India, US aim for $500 billion in bilateral trade by 2030: Official
- The Indian Express. (2025, March 21). India ready for trade deal with US by the end of 2025: EAM Jaishankar
- Press Trust of India. (2025, April 1). Deadline for first phase of India-US trade deal likely to be moved to September
- Rajesh Agrawal, the additional secretary at the department of commerce, and his team will soon head to the US to discuss the proposed Bilateral Trade Agreement (BTA) between India and the US, as they aim to finalize the first tranche of the deal by fall.
- An interim agreement might be reached before July 9 to avoid full tariffs, providing India temporary relief from the 26% additional tariffs imposed by the US.
- The BTA, aiming to boost bilateral trade from $200 billion to $500 billion by 2030, is crucial for both economies, encompassing areas like military partnership, commerce, and technology collaboration.
- Exporters are anxious about the BTA negotiations, as their shipments to the US may face unfavorable tariffs if a deal isn't reached before the current tariff lull expires.
- The finalization of the first phase of the BTA is expected in September-October, with the interim agreement offering some relief from currently suspended reciprocal tariffs.
- The potential BTA, along with other US measures, could foster better reciprocity between the two economies and opens new avenues for American and Indian goods in the finance, market, business, politics, and general-news sectors.
