India-US Trade Talks: Piyush Goyal Confirms Steady Progress
India-US Trade Talks Update: Sensitive Issues Persist but Optimism Grows on Both Sides
Union Commerce Minister Piyush Goyal on Wednesday offered a detailed update on the India-US Trade Talks, describing the ongoing discussions as “going very well” but acknowledging that “many sensitive and serious issues” remain on the table. His remarks come at a time when India continues to face 50% tariffs imposed by the United States amid persistent trade tensions.
Speaking to ANI, Goyal said, “Talks are going on very well. There are many sensitive and serious issues, so naturally, it takes some time.” His statement highlights both optimism and caution, underscoring the complexity of the negotiations aimed at finalizing the India-US Bilateral Trade Agreement (BTA).
India-US Trade: Parallel Statements from Washington
Goyal’s remarks closely follow comments from the White House, which confirmed progress in the bilateral negotiations. On Tuesday, White House Press Secretary Karoline Leavitt said that President Donald Trump remains deeply invested in strengthening ties with India and maintains regular contact with Prime Minister Narendra Modi.
“The President is positive and feels very strongly about the India-US relationship,” Leavitt stated during a press briefing. “A few weeks ago, he spoke to the Prime Minister directly when he celebrated Diwali in the Oval Office with many high-ranking Indian-American officials here at the White House.”
Leavitt further added that Trump’s trade team is engaged in “very serious discussions” with New Delhi and that the President holds “great respect” for Prime Minister Modi. The United States Ambassador to India, Sergio Gor, has also been actively involved in facilitating these diplomatic exchanges.
Context of Trade Tensions and Tariffs
The renewed discussions come against the backdrop of steep trade tariffs, which have become a major point of contention between the two nations. Earlier this year, President Trump imposed a 25% tariff on Indian goods beginning August 1, later increasing it to 50%, citing India’s continued purchases of Russian oil. The higher tariff came into effect on August 27, further complicating the trade relationship.
Despite these hurdles, both governments have expressed determination to restore economic balance and expand bilateral trade, which currently stands at USD 191 billion, with a shared goal of reaching USD 500 billion by 2030.
India-US Trade: Progress on the Bilateral Trade Agreement
According to senior officials, negotiators from both countries are finalizing the initial phase of the Bilateral Trade Agreement. The first portion of the deal reportedly covers tariff rationalization, market access, intellectual property rights, and digital trade frameworks.
A government source revealed that the discussions have been “advancing satisfactorily without encountering fresh obstacles” and that both sides remain “optimistic regarding the timeline.”
Since March 2025, five formal rounds of negotiations have taken place, including a virtual consultation on October 23. The first phase of the BTA, initially expected to conclude by the fall of 2025, appears to be nearing completion as consensus grows on key terms.
Recent Diplomatic Engagements
Piyush Goyal’s September visit to Washington marked a major step forward in trade diplomacy. He led high-level talks accompanied by senior ministry officials, including Special Secretary and Chief Negotiator Rajesh Agrawal, to strengthen commercial cooperation.
In parallel, U.S. representatives led by Brendan Lynch, the Assistant U.S. Trade Representative for South and Central Asia, met with Indian counterparts in New Delhi in mid-September to accelerate efforts toward a mutually beneficial trade framework.
Both delegations have emphasized that the final agreement must be comprehensive, fair, and future-ready, covering not just goods and services but also technology, sustainability, and innovation sectors.
Energy Diplomacy and Russian Oil
Another element influencing trade relations is India’s purchase of Russian oil. President Trump, during his recent Asia tour, acknowledged India’s efforts to reduce imports from Moscow, describing New Delhi as “very good” on the issue. He also mentioned that Prime Minister Modi personally assured him of a reduction, though the Indian government has not officially confirmed such a commitment.
The matter continues to be a delicate balancing act for India, which seeks to maintain its strategic autonomy while strengthening its economic ties with Washington.