The proposed Bilateral Trade Agreement (BTA) between India and America is now almost ready. According to a PTI report, officials of both the countries are busy deciding the final language and formalities of this agreement. According to sources, both sides are now unanimous on most of the issues of the talks and there are very few differences left.
Government sources said that negotiations on the trade agreement are progressing steadily and no new issues have stopped the pace of talks. The official said, ‘We have agreed on most of the points and now only the final touches are left.’
Consensus reached after five rounds of talks
So far, five rounds of negotiations have taken place between India and America for the first phase of BTA. In these meetings, both the countries have extensively discussed the major terms related to trade. Sources say that now the talks have reached a decisive point. It is expected that the agreement can be announced by the end of November.
Commerce Minister Piyush Goyal had also indicated that both the countries are working to finalize the agreement by November. He had said that talks are going on continuously and both sides are adopting positive attitude at various levels.
Tariff dispute resolved soon?
India’s Chief Economic Advisor V. Ananth Nageswaran also recently expressed confidence that the ongoing tariff dispute between India and America can be resolved in the next two months. He says that an agreement can soon be reached on removing the additional duty of 25% imposed by America.
Nageswaran said at an event organized in Kolkata, ‘I do not have any inside information, but I am confident that in the coming few months this issue will be resolved and the tariff charges will be abolished.’
Root of the dispute and current situation
The tariff dispute started when US President Donald Trump imposed 25% additional duty on Indian goods citing India buying oil from Russia. America wants India to reduce oil purchases from Russia and rely more on America and its allies for energy imports. At present India imports about 34% of its total crude oil from Russia and about 10% from America. However, despite these differences, both the countries are now unanimous in strengthening their trade partnership.
Announcement may be made in ASEAN Summit
America is India’s largest trading partner. India’s exports to America stood at $86.51 billion in fiscal year 2025, making it the largest export market for India. There are indications that this trade agreement may be formally announced during the ASEAN Summit. Prime Minister Narendra Modi will participate in this meeting virtually.