India-US Trade: Piyush Goyal Signs Dialogue Amid US Shutdown

India-US Trade: Union Minister for Commerce and Industry Piyush Goyal on Tuesday reaffirmed India’s commitment to advancing talks with Washington on the long-awaited India-US Bilateral Trade Agreement (BTA). Speaking to reporters, Goyal said both nations remain in “constant dialogue,” with the possibility of finalising the deal by the self-imposed November 2025 deadline still on the table.

“We are in constant dialogue with the USA (on the trade pact), and talks are on at various levels. We will give more information on this soon on how we are thinking to take it forward,” Goyal stated.

India-US Trade: Will the November Deadline Hold?

When asked if the ambitious November 2025 timeline was realistic, Goyal said, “There is every possibility.” He also hinted that the next round of negotiations could happen in person, but acknowledged that the US government shutdown has added uncertainty.

“Aap sab jante hain ki USA mein aaj-kal government shutdown mode mein hai. Toh uske maddenazar dekhna padega ki kaise baatcheet ho sakti hai, kahan ho sakti hai, aur kab ho sakti hai (As you all know, the US government is currently in shutdown mode. So, keeping that in mind, we’ll have to see how, where, and when the discussions can take place),” he told the media.

US Government Shutdown Adds Complexity

The United States has been under a government shutdown since midnight on October 1, 2025, after Congress failed to pass a federal funding bill. As a result, non-essential services have been halted, and many government employees remain unpaid. Essential operations, including defence, social work, and the US Postal Service, continue to function.

This political deadlock in Washington could impact the pace and scheduling of trade discussions. Nevertheless, Goyal’s recent visit to the United States, where he led a high-level business delegation, laid the groundwork for further engagement despite the turbulence.

Why the India-US Trade Agreement Matters

The potential India-US Trade Agreement holds significant implications for exporters and businesses on both sides. Since March 2025, India and the US have been engaged in multiple rounds of constructive dialogue to create a framework that reduces trade barriers, strengthens investment ties, and builds greater economic resilience.

The urgency of the November 2025 deadline is underscored by rising trade tensions. President Donald Trump has imposed steep tariffs on Indian goods — starting with a 25% reciprocal tariff linked to India’s crude oil imports from Russia, later compounded by an additional 25% import duty, stacked on top of baseline tariffs. Indian exporters now face tariff rates as high as 50%, threatening competitiveness in the US market.

A mutually beneficial deal could provide relief for Indian businesses while ensuring American companies gain greater access to one of the world’s fastest-growing markets.

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