India eyes interim trade pact with U.S. by June, says Goyal

Commerce Minister urges early agreement on low-hanging fruits as U.S. and Indian teams enter final round of negotiations

June 10, 2025

Commerce Minister Piyush Goyal emphasised that perfection should not delay progress

Talks with the visiting U.S. team in New Delhi are scheduled to conclude on June 10

The deal aims to boost bilateral trade to $500 billion by 2030 from the current $191 billion

India is pushing for full exemption from a 26% reciprocal tariff on domestic goods.

Commerce Minister Piyush Goyal said India is open to finalising an interim trade agreement with the United States by resolving non-contentious issues. This signalled flexibility as bilateral talks entered a critical phase. His remarks come while a U.S. delegation is in New Delhi for a week-long negotiation round that ends on June 10.

Goyal, currently visiting Switzerland to meet government and business leaders, highlighted that an entire trade pact need not be concluded in one go. “Why wait until it’s perfect?” he said, advocating for an approach that captures early wins in less controversial sectors to unlock immediate benefits.

He confirmed that India was fully prepared to act on low-hanging fruit, expressing confidence that issues that are already aligned should be captured without delay. Referring to the interim agreement with Australia as a successful precedent, he pointed out that both countries had implemented an initial trade deal. He was now negotiating to expand its scope.

The current negotiations with the U.S. gained renewed importance as both countries aim to clinch a limited deal before the July 9 deadline, when the U.S. is expected to resume a suspended 26% tariff on Indian goods. India is pushing for full exemption from this reciprocal tariff as part of the interim arrangement.

In February this year, Prime Minister Narendra Modi and U.S. President Donald Trump announced plans to conclude the first tranche of a multi-sector Bilateral Trade Agreement (BTA) by fall 2025. The long-term goal is to more than double bilateral trade to $500 billion by 2030 from the present $191 billion.

India’s chief negotiator, Special Secretary Rajesh Agrawal from the Department of Commerce, recently concluded a four-day visit to Washington to advance the deal. This was followed by a visit from Minister Goyal to the U.S. to reinforce the diplomatic momentum. This week’s talks in New Delhi are viewed as a critical step towards finalising at least an interim framework.

The U.S. remains India’s largest trading partner, a position it has held for four consecutive years. In 2024–25, bilateral trade between the two nations stood at $131.84 billion. The U.S. accounts for 18% of India’s total goods exports, 6.22% of its imports, and roughly 10.73% of total merchandise trade.

Source: Deccan Herald

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