The final details of the proposed Bilateral Trade Agreement (BTA) between India and the United States will not be disclosed yet. According to Minister of Commerce and Industry Piyush Goyal, the final text will only become available after the US agrees to provide Indian products with more favorable tariff rates compared to goods from competing countries.
Goyal stated this at a Ministry of Commerce seminar dedicated to free trade. The government believes that such a condition will give Indian goods a competitive advantage in the American market in terms of pricing. He emphasized that as long as India does not receive more favorable tariffs from the US, the final information on the BTA will remain confidential.
Previously, India and the US announced the completion of the first phase of the agreement framework in February. However, subsequent changes in the US tariff structure led to the resumption of negotiations between the two nations. Specifically, the US introduced an additional 10% duty on products from many countries, including India, starting July 24.
In the American market, Indian products face stiff competition from countries such as Sri Lanka, Bangladesh, Thailand, Cambodia, and Vietnam. Key rivals also include Indonesia and Malaysia. The government's goal is for India to secure lower tariffs compared to these countries, which would allow Indian goods to be sold cheaper and increase their price attractiveness. In the fiscal year 2025-26, India exported approximately $87 billion worth of goods to the US.
Commerce and Industry Minister Piyush Goyal refuted rumors about incorrect statements regarding the lack of agreement details, asserting that no compromises were made regarding India's interests in the bilateral trade agreement with the US. He claimed that the interests of farmers, fishermen, MSMEs, workers, handicraft producers, artisans, and the automotive sector were protected. The minister noted that the agreement was brought to the maximum possible level of finalization after discussions with the automotive sector.
Goyal explained that before any Free Trade Agreement (FTA) is approved, the government conducts comprehensive consultations with all relevant parties. He added that all FTAs, PTAs, and BTAs concluded under the current administration have received broad support from stakeholders. Furthermore, he clarified that the current agreement with the US is only the first phase, and the dialogue on trade between the two countries will continue.
According to Piyush Goyal, India has nine free trade agreements with economic blocs whose combined GDP is about $60 trillion. These agreements give India hope of gaining preferential access to approximately two-thirds of global trade. India has already implemented trade agreements with the UK, Mauritius, Oman, UAE, and Australia. The trade pact with New Zealand is expected to come into force soon, and the agreement with the European Union (EU), comprising 27 countries, will be part of India's major trade moves.
Negotiations are also underway for other trade agreements by India. Goyal reported that work is being done on trade agreements with Canada, Mexico, Chile, MERCOSUR, Botswana, Eswatini, Lesotho, Namibia, South Africa, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, and Israel. Additionally, existing trade agreements with Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, Vietnam, South Korea, and Japan are being reviewed. The government aims to secure preferential rates that will grant India access to approximately 75% of world trade at more favorable or lower tariff rates compared to its competitors.
The next major trade meeting between India and the US may take place at the end of September. Piyush Goyal plans a trip to the US at the end of the month. A two-day G20 trade ministerial meeting will begin in Milwaukee on September 30, currently chaired by the US. It is expected that during this meeting, Goyal will hold a bilateral discussion with the US Trade Representative (USTR) Jamieson Greer. Commerce and Industry Minister Piyush Goyal reiterated that the final details of the bilateral trade agreement will only become public after the US agrees to provide Indian products with higher tariff rates than those of its main competitors.