Commerce and Industry Minister Piyush Goyal on Thursday said India will finalise and announce the details of the proposed Bilateral Trade Agreement (BTA) with the United States only after Washington offers preferential tariff terms to Indian products compared with those available to competing countries.
Goyal's remarks come amid renewed expectations of an early conclusion of the long-pending trade pact. US Ambassador to India Sergio Gor recently said that the agreement is in its final stages and is nearly complete in principle. However, Goyal indicated that India is still seeking better tariff treatment to ensure that Indian exporters remain competitive in the US market.
“As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details,” Goyal said while addressing a national workshop on the Leveraging FTAs Outreach programme.
India and the US had announced in February that they had finalised the framework for the first phase of the bilateral trade agreement. However, subsequent changes in the US tariff regime have led to further discussions between the two sides.
The United States imposed an additional 10 per cent tariff on a number of countries, including India, from July 24. The evolving tariff structure has made relative competitiveness a key concern for New Delhi as it negotiates the trade agreement.
Countries such as Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia are among India's major competitors in the US market. Securing a tariff advantage over these economies could help Indian exporters offer goods at more competitive prices in the American market.
Goyal also highlighted India's expanding network of free trade agreements, saying the country's nine FTAs cover economies representing around USD 60 trillion in GDP and could provide preferential access to nearly two-thirds of global trade.
He said the trade agreement with New Zealand is expected to become operational soon, followed by the pact with the European Union, comprising 27 nations.
The minister reiterated that the India-US BTA would also be concluded once India receives tariff treatment that provides its exporters an advantage over competitors.
Goyal is scheduled to travel to the United States in late September to attend the G20 Trade Ministerial in Milwaukee. He is also expected to hold bilateral discussions with US Trade Representative Jamieson Greer, with issues related to the trade agreement likely to feature prominently in the talks.
The two-day G20 ministerial meeting is scheduled to begin on September 30, with the United States holding the G20 presidency in 2026.
The stakes are significant for both countries given the scale of bilateral commerce. In 2025, India's goods exports to the United States stood at USD 103.82 billion, while US exports to India were approximately USD 45.6 billion.
This put total bilateral goods trade at around USD 149.42 billion. Against this backdrop, both sides are seeking an agreement that can expand market access while addressing tariff and competitiveness concerns.
For India, preferential tariff treatment in the US market is particularly important as exporters compete with several Asian economies for market share. Goyal's latest comments indicate that New Delhi is keen to ensure that the final BTA delivers commercially meaningful advantages for Indian businesses before the agreement is formally announced.
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