India-US Trade Talks: Piyush Goyal to Lead High-Level Delegation to Washington
| 2025-05-13
Union Minister of Commerce and Industry Piyush Goyal
India’s Commerce Minister Piyush Goyal will visit the US from May 16 to lead talks aimed at advancing the proposed India-US bilateral trade agreement.
India’s Minister of Commerce and Industry Piyush Goyal is scheduled to lead a senior-level delegation to the United States beginning 16 May for a new round of discussions aimed at advancing the proposed bilateral trade agreement (BTA), according to Indian government officials.
The four-day visit will focus on building momentum toward an interim trade deal, with both nations aiming for “early mutual wins” before finalising the broader agreement later this year. Goyal is expected to hold meetings with United States Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick during the visit.
Trade Talks Amid Tariff Pause
The planned discussions, which will run from 17 to 20 May in Washington, take place during a 90-day pause on additional US tariffs targeting Indian goods. The United States suspended these tariffs—amounting to an additional 26 percent on certain imports—until 9 July, in a move announced on 2 April to narrow the growing trade imbalance.
However, a baseline 10 percent tariff on Indian goods remains in effect.
According to Indian officials, the tariff suspension is intended to give negotiators from both sides a window to advance talks. Chief negotiators, including India’s Rajesh Agrawal and the US Assistant Trade Representative for South and Central Asia Brendan Lynch, are set to meet from 19 to 22 May.
Focus on Market Access and Tariff Concessions
At the heart of the proposed agreement are efforts to address both tariff and non-tariff barriers. India is seeking US duty reductions on key labour-intensive sectors including textiles, leather goods, gems and jewellery, chemicals, shrimp, oilseeds, bananas and grapes.
In return, Washington is pressing for improved market access for American exports such as electric vehicles, wines, industrial goods, petrochemicals, dairy products, apples and other tree nuts.
The framework for the trade deal includes roughly 19 chapters, covering a broad range of areas such as rules of origin, customs procedures, services, and non-tariff issues. These terms of reference have already been agreed upon, officials said.
“The talks are structured to secure tangible outcomes in the short term while laying the foundation for a more comprehensive agreement,” one Indian official noted.
Recent Diplomatic Engagements
The visit by Goyal follows that of US Vice President JD Vance, who travelled to New Delhi in April as part of the two nations’ broader push to reset and deepen trade ties under President Donald Trump’s administration.
Earlier this year, Goyal also held bilateral discussions with US officials in Washington and New Delhi. Last month, Indian and American trade representatives held a three-day session in the US capital, underscoring the urgency both sides attach to resolving long-standing trade issues.
US Remains India’s Top Trading Partner
The United States has retained its position as India’s largest trading partner for a fourth consecutive year in the 2024–25 fiscal year, with bilateral trade valued at $131.84 billion. It accounts for approximately 18 percent of India’s total goods exports and more than 10 percent of the country’s overall merchandise trade.
India recorded a goods trade surplus with the United States of $41.18 billion in 2024–25—up from $35.32 billion the previous year. This growing imbalance has been a persistent concern for Washington, which has cited it as a barrier to more equitable trade relations.
Broader Context and Outlook
The renewed efforts to finalise a trade agreement come as both countries seek to bolster their economic and strategic ties amid shifting global trade dynamics. An interim deal—focused on goods and tariffs—is being considered a practical step toward a more ambitious trade framework covering services, digital trade, and investment.
Negotiations have repeatedly stumbled over tariff disputes, particularly in the wake of earlier US measures on Indian steel and aluminium products. India’s own proposal to impose retaliatory duties on select US goods is expected to be part of the upcoming dialogue.
The outcome of Goyal’s visit could determine whether both sides can meet their informal deadline of finalising a first-phase deal by September or October 2025.
While significant differences remain, the commitment to high-level engagement signals a growing mutual interest in stabilising and expanding one of the world’s most important bilateral trade relationships.
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