India Targets Trade Pact with US by November, Says Minister

India’s Commerce and Industry Minister, Piyush Goyal, expressed optimism on October 3, 2023, that the country will finalize a bilateral trade agreement (BTA) with the United States by November. Speaking at the Annual Global Investor Conference 2025 in Mumbai, Goyal noted that geopolitical issues had temporarily overshadowed trade negotiations between the two nations. He stated, “I do hope that things will get back on track soon and we will conclude a bilateral trade agreement by the fall, November or so, as was discussed by our two leaders in February.”

Discussions surrounding the trade pact, which has been under negotiation since March, have faced challenges. Goyal mentioned that five rounds of talks have been completed, but a US team was scheduled to visit India on August 25 to continue negotiations. However, this visit was postponed following the announcement of a 50 percent tariff on Indian goods, effective August 27. As of now, no new dates have been set for the sixth round of negotiations.

India and the United States aim to significantly boost bilateral trade from the current USD 191 billion to USD 500 billion by 2030. Goyal emphasized that the negotiation process remains ongoing, stating, “Lots happen, lots more to go…With the US, we are in dialogue on a BTA.”

Geopolitical Context and Supply Chain Resilience

The backdrop of geopolitical tensions has influenced the trade discussions. During the same conference, US Treasury Secretary Scott Bessent commented on the relationship between the two countries, asserting that despite current challenges, they will eventually resolve their differences. He remarked, “I think at the end of the day, two great countries (India and the US) will get this solved.” Bessent’s comments came in light of India’s continued purchase of Russian oil, a point of contention amid rising global tensions.

India has defended its energy procurement policies, maintaining that they are driven by national interests and market conditions. Goyal highlighted India’s commitment to creating robust supply chains that are not dependent on external factors. He stated, “Our supply chains are resilient, and we are not at the mercy of any other country choosing to switch on or switch off the tap,” reinforcing India’s vision of becoming self-reliant, or Atmanirbhar.

Progress with Other Trade Agreements

In addition to the negotiations with the US, Goyal provided updates on India’s ongoing discussions with the European Union regarding a comprehensive trade agreement. He noted that talks are in an advanced stage, with the 13th round of negotiations set to begin on September 8, 2023. Goyal mentioned that Sunil Barthwal, India’s Commerce Secretary, is currently in Brussels to engage with EU officials.

This trade agreement aims to cover 23 policy areas, including trade in goods and services, investment, and intellectual property rights. The EU market represents about 17 percent of India’s total exports, underlining the importance of this partnership. Following the 12th round of talks, which concluded in June 2022, both sides are working towards finalizing the agreement by the end of this year, as agreed upon by Prime Minister Narendra Modi and the European Commission President on February 28, 2024.

The potential benefits of these trade agreements are substantial, not just for India but for its partners as well, as they seek to enhance economic ties and facilitate greater market access. As negotiations continue, the global business community watches closely, hopeful for the expansion of trade relations with India.