India-US Trade Pact Talks: India Actively Engaged, US Team to Visit in August

India is actively discussing a bilateral trade agreement with the US, with five rounds of negotiations held so far, including the last one in Washington in July 2025. The US team is set to visit India in August for the next round of talks. India had a trade surplus with the US of USD 35.32 billion in goods in 2023-24 and USD 41 billion in 2024-25. Bilateral trade between India and the US reached USD 186 billion in 2024-25.

India is actively engaged in bilateral trade negotiations with the United States, with five rounds of talks completed so far, including the latest round held in Washington in July 2025. The US team is scheduled to visit India in August for the next round of discussions. The bilateral trade between India and the US reached USD 186 billion in 2024-25, with India maintaining a trade surplus of USD 41 billion in goods for the same period.

The negotiations are focused on finalizing a bilateral trade agreement (BTA) aimed at doubling the bilateral trade to USD 500 billion by 2030 from the current USD 191 billion. The US has expressed demands for duty concessions on a range of goods, including agricultural products, dairy, and genetically modified crops, while India seeks the removal of existing tariffs on steel and aluminum, automobiles, and labor-intensive sectors such as textiles and gems and jewelry [1].

The latest development in the trade talks comes amidst escalating tariffs imposed by the US on Indian goods. President Trump announced a 25% import duty on Indian goods starting August 7, which was initially scheduled to begin on August 1. The US has also threatened to impose additional tariffs on Indian crude oil and military equipment imports from Russia, although the specific penalties are yet to be specified [1].

India has taken a firm stance on extending duty concessions on agricultural products, dairy, and genetically modified foods, citing concerns over the livelihoods of small farmers and the potential impact on food security. The Indian government argues that tariffs are essential to protect these sectors, which employ over 700 million people in the rural economy [1].

Despite the threat of tariffs, India is continuing its efforts to secure a BTA with the US. Officials are preparing for continued negotiations in mid-August, when a US delegation is expected to visit New Delhi. The broader trade deal under negotiation is seen as a longer-term solution that could offset short-term disruptions and reshape economic ties between the two countries [2].

The US has also pushed for immediate duty elimination on most US products as soon as the trade deal comes into force. India typically phases out tariffs gradually, but the US is demanding a much faster pace, which India is resisting [2].

The ongoing trade talks between India and the US are complex and multifaceted, involving a range of sectors and products. The negotiations are expected to continue, with both sides expressing a willingness to reach a mutually beneficial agreement.

References:
[1] https://m.economictimes.com/news/economy/foreign-trade/india-hardens-stance-in-us-trade-talks-refuses-tariff-cuts-on-farm-dairy-gm-foods-as-trump-escalates-tariff-war/articleshow/123058928.cms
[2] https://www.business-standard.com/economy/news/india-presses-ahead-with-us-trade-talks-despite-looming-aug-1-tariffs-125073001119_1.html