India in advance stage of negotiations for trade pact with US: Piyush Goyal

India and the United States are in the advanced stages of negotiating a bilateral trade agreement, Commerce and Industry Minister Piyush Goyal said on Monday, signalling momentum in talks aimed at easing trade barriers between the two countries.

The comments come after a US delegation led by Deputy Trade Representative Rick Switzer visited India earlier this month to review progress in the negotiations. The two-day discussions concluded on December 11.

“We are already at an advanced stage in our discussions with the US,” Goyal said while addressing the media on the sidelines of announcing the conclusion of negotiations for the India–New Zealand free trade agreement.


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Goyal noted that India has already finalised free trade agreements with three members of the Five Eyes (FVEY) intelligence alliance — Australia, the UK and New Zealand — underlining New Delhi’s expanding engagement with key Western economies. The Five Eyes grouping comprises Australia, Canada, New Zealand, the UK and the US.

India is also preparing to re-engage Canada on a bilateral trade pact. “We are soon going to launch discussions for the ToR (terms of reference) with Canada also,” Goyal said, adding that “this reflects the growing strategic importance of India in world geopolitics”.

The India–US negotiations are focused on concluding the first tranche of a Bilateral Trade Agreement (BTA), a deal that has taken on added urgency amid rising trade frictions. The Trump administration has imposed tariffs of up to 50 per cent on certain Indian goods entering the US, significantly impacting exporters.

Indian industry and exporters are closely watching the talks, as the elevated duties have weighed on shipments to the American market. While exporters have been diversifying into alternative destinations, the US remains critical, accounting for nearly 18 per cent of India’s total exports.

Trade experts say resolving the tariff issue will be central to finalising the first phase of the agreement. As part of the negotiations, the US has sought duty concessions on agricultural products such as almonds, corn and apples, as well as on industrial goods. India, however, has firmly resisted opening up sensitive sectors, particularly agriculture and dairy, maintaining that it will not compromise the interests of farmers and MSMEs.

The push for a bilateral pact was formally initiated in February, when leaders of both countries instructed officials to begin negotiations. The initial plan was to conclude the first tranche by the fall of 2025. So far, six rounds of talks have been held.

The broader objective of the agreement is to more than double bilateral trade to USD 500 billion by 2030, from the current level of USD 191 billion. In 2024–25, the US remained India’s largest trading partner for the fourth straight year, with total bilateral trade valued at USD 131.84 billion, including USD 86.5 billion in Indian exports.

With inputs from PTI