India is looking to finalise the opening tranche of the India–US Bilateral Trade Agreement (BTA) before the end of the year, with commerce secretary Rajesh Agarwal saying negotiations have advanced significantly despite recent shifts in global trade conditions. Speaking at FICCI’s Annual General Meeting on Friday, he said discussions have moved forward enough for both sides to be “very optimistic and very hopeful” of reaching a solution within the current calendar year, as per news agency ANI.Agarwal, however, warned that trade talks often hinge on last-minute hurdles. “With any trade negotiations, the final deadlines cannot be because even if there is one sticking point… the trade deal may not meet that deadline,” he said, reflecting the unpredictable nature of long-form agreements. India and the US had originally targeted autumn 2025 for completing the first tranche of the BTA, but recent changes in Washington’s trade policy — including new reciprocal tariffs — have altered the roadmap.He noted that the US move to impose tariffs on all trading partners had reshaped discussions. As a result, New Delhi and Washington are now holding two parallel negotiations: the long-term Bilateral Trade Agreement and a more immediate Framework Trade Deal designed to address the high tariffs applied on Indian goods. The framework talks, he said, are nearing completion. “We are close, we have tried to iron out most of the issues… now it is only a matter of time,” he told industry leaders, adding that both sides must find the “right landing zone” for an announcement.He also stressed the need to eventually eliminate reciprocal tariffs completely to unlock the full BTA, a process he said “will take a bit of time”.United States imposed tariffs of up to 50% on Indian imports beginning in late August, even as negotiations continued. President Donald Trump has pushed India to curb Russian oil purchases and reduce tariffs in sensitive sectors, including agriculture. Trump said earlier this month that talks with Prime Minister Narendra Modi were progressing well.Agarwal reiterated that most outstanding issues have been resolved and any final gaps can be handled at a “political level”, reported Reuters. India, he said, remains confident of achieving an agreement “in a very short while”.
The BTA — formally proposed in February and backed by leaders of both countries — aims to boost bilateral trade from $191 billion to $500 billion by 2030. Negotiations have continued despite the US imposing a 25% tariff on Indian goods from 1 August, followed days later by another 25% rise, citing India’s ongoing purchase of Russian oil.India’s trade deficit widened to a record $41.68 billion in October due to higher gold imports and reduced exports to the US. Agarwal said the deficit was not in a “worrying zone”, reported Reuters.
