India, US virtual trade talks this week ahead of May negotiations

India and the US will hold another round of trade negotiations in the second half of May, with virtual discussions set to begin this week, a senior Commerce Ministry official said on Tuesday.

The talks follow a four-day meeting (March 26-29) between Indian negotiators, led by Additional Secretary Rajesh Aggarwal, and their US counterparts. These discussions took place against the backdrop of US President Donald Trump’s threats to impose reciprocal tariffs on Indian goods from April 2. While Trump announced a 26 per cent tariff, he deferred the new tariff regime for 90 days on April 3.

The commerce ministry official confirmed that both sides had agreed on the terms of reference for the Bilateral Trade Agreement (BTA). Negotiations would commence virtually this week before transitioning to in-person discussions, likely in late May.

Commerce Secretary Sunil Barthwal said, “With the US, we have chosen a clear path of trade liberalisation and BTA. If we follow this path, India’s trade with the US will grow, presenting more opportunities than concerns.”

Both nations aim at expanding trade through the BTA. In the last fiscal year (ending March 31, 2025), the US was India’s top export destination. India exported $88.61 billion worth of goods to the US out of the total $820 billion global exports.

The two sides plan to implement the first tranche of the BTA by September-October this year. Officials clarified that while the target deadline was September-October, an earlier conclusion was possible.

The negotiations build on the commitment made by Prime Minister Narendra Modi and President Trump in February to deepen bilateral relations, with a shared goal of reaching $500 billion in trade by 2030 through the BTA.

Both countries have expressed satisfaction with the meeting’s outcome and reaffirmed their commitment to continued collaboration, sources said.