Piyush Goyal holds ‘good discussions’ with US Commerce Secretary on India-US trade deal

Union minister of Commerce and Industry Piyush Goyal held "good discussions" with US commerce secretary Howard Lutnick on the soon-to-be-expected India-US bilateral trade agreement.

“Good discussions with Secretary Howard Lutnick towards expediting the first tranche of India-US bilateral trade Agreement,” Goyal said in a post on X.

India is currently engaged in negotiations for around 10 Free Trade Agreements (FTAs) and bilateral trade deals with various global partners, even as it secured a “historic and ambitious” agreement with the UK on May 6. Since 2019, India has been actively pursuing these trade deals in response to changing economic conditions and to address the trade imbalance that tends to favour its partners. According to a source from the Ministry of Commerce, India is in discussions regarding updates to existing FTAs and bilateral agreements, as well as new deals with approximately ten countries. Negotiations are ongoing with the US and the EU, with efforts also focused on establishing fresh trade relations with other nations.

India and the US are working on a Bilateral Trade Agreement (BTA), with both sides expected to finalise an initial agreement by the end of the first half of the current financial year. Following the India-US joint statement of February 13, 2025, which aimed to boost bilateral trade to $500 billion by 2030, the two countries held a meeting in New Delhi in March. The Ministry of Commerce noted that both sides had broadly agreed on a mutually beneficial, multi-sector trade deal, with the first phase set to be concluded by fall 2025. A follow-up meeting in April in Washington D.C. highlighted that discussions on tariff and non-tariff issues were productive. Both sides outlined plans to start in-person sectoral discussions by the end of May.

Earlier in April, Goyal had said that India’s "applied tariffs" to the US are only 7-8%. "Our applied tariff to the United States is probably 7% or 8%. It's not humongous," he said.

Similarly, India and the European Union have set a goal to complete their FTA negotiations by the end of this year. Goyal met with EU Commissioner for Trade and Economic Security, Maros Sefcovic, in Brussels on May 1, and both parties are scheduled to meet again in New Delhi later this month to continue their deliberations.

Furthermore, India and Chile have agreed to begin talks on a Comprehensive Economic Partnership Agreement (CEPA), which will extend beyond trade to include sectors like technology, health, agriculture, and critical minerals. Given India's focus on energy transition and electric mobility, the CEPA will also enable Indian companies to compete for lithium mining rights.

India and New Zealand have also decided to resume FTA negotiations, which had been stalled for over a decade. Additionally, India is advancing CEPA discussions with Oman and has signed an agreement to strengthen trade and investment ties with the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland.

The ASEAN-India Trade in Goods Agreement (AITIGA), signed in 2009, is also under review. Meanwhile, India and Qatar are exploring FTA opportunities, with plans to double their bilateral trade to $28 billion in the next five years. Other agreements in progress include a CEPA with Canada, an FTA with the Gulf Cooperation Council (GCC), and an investment treaty with Saudi Arabia.