Ira Singh 
Union Commerce and Industry Minister Piyush Goyal on Monday held discussions with US Commerce Secretary Howard Lutnick in Washington to expedite negotiations on the first phase of the proposed bilateral trade agreement between the two countries. Goyal, who is currently in Washington for a ministerial-level meeting, said the talks aimed at fast-tracking the initial phase of the trade deal. “Good discussions with Secretary @HowardLutnick towards expediting the first tranche of India-US Bilateral Trade Agreement,” the minister posted on X, along with a photo from the meeting held on May 19. The high-level dialogue is part of ongoing efforts by both sides to secure an early and balanced outcome through a phased approach to the agreement. This week's ministerial meeting is being followed by detailed deliberations between chief negotiators from India and the United States, which are scheduled to continue until May 22. The current round of talks is taking place at a time when both nations are exploring the possibility of an interim arrangement in goods trade to achieve early gains, with the goal of finalising the first phase of the deal by September or October this year.
According to official release, key points under discussion include market access, rules of origin, and non-tariff barriers—longstanding issues that have often surfaced in bilateral trade talks. Officials are also looking to utilise a 90-day window during which the US has suspended an additional 26 per cent tariff on Indian goods until July 9. This temporary relief, announced on April 2, is intended to address the widening trade imbalance. However, a 10 per cent baseline tariff remains in effect.
India is seeking greater duty concessions for its labour-intensive sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. The US, in turn, is pushing for tariff cuts on specific industrial goods, electric vehicles, wines, petrochemical products, dairy items, and agricultural products like apples and tree nuts. Both countries have finalised the terms of reference for the bilateral trade agreement, comprising around 19 chapters covering areas such as tariffs, goods, services, rules of origin, non-tariff barriers, and customs facilitation. The US has consistently voiced concerns about non-tariff barriers affecting the access of American products to the Indian market, a matter that remains a central part of the ongoing negotiations.
The talks take place against the backdrop of a robust trade relationship. The US retained its position as India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade reaching USD 131.84 billion. The US accounts for nearly 18 per cent of India’s total goods exports, 6.22 per cent of imports, and 10.73 per cent of total merchandise trade. India recorded a trade surplus of USD 41.18 billion with the US in FY25, up from USD 35.32 billion in the previous fiscal year.
(Business Correspondent)
