NEW DELHI: India and the United States are currently engaged in negotiations for a Bilateral Trade Agreement (BTA), which is yet to be finalised, Parliament was informed on Tuesday.
In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said that the government is mindful of the sensitivities around Free Trade Agreements (FTAs) and is committed to safeguarding India’s economic interests.
“Every FTA is unique and based on specific trade dynamics aimed at maximizing mutual benefits,” said Prasada, adding that discussions are underway with the US, though no agreement has been signed so far. He further clarified that FTAs come into effect only after due signing and ratification by both countries.
Negotiators from both countries recently concluded the fifth round of discussions in Washington, with an interim agreement initially targeted for conclusion by August 1.
However, sources indicate that a breakthrough remains elusive due to differences over tariff concessions on agricultural and industrial goods. While India is pushing for the removal of Section 232 tariffs on steel and aluminium, the US has sought greater access to India’s agricultural and dairy markets—areas India considers highly sensitive.
Amid this uncertainty, attention is now focused on the possibility of a broader trade package being finalized by September or October, with further rounds of talks expected in New Delhi in the coming weeks.
Meanwhile, India is set to formalise its trade agreement with the United Kingdom this week. Prasada informed the Lok Sabha that the FTA negotiations with the UK concluded on May 6, 2025.
Calling it a “modern, comprehensive and landmark agreement,” the minister said the deal will enable deep economic integration, trade liberalisation, and tariff reductions across key sectors.
Prime Minister Narendra Modi will travel to the United Kingdom from July 23 to 24 at the invitation of British Prime Minister Keir Starmer. He will be accompanied by Commerce and Industry Minister Piyush Goyal for the official signing ceremony of the FTA.
The agreement is expected to open up substantial export opportunities for India, particularly in labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, toys, and sports goods. It also promises significant gains for auto parts, engineering goods, and organic chemicals.
Officials stated that the FTA aligns with India’s domestic reforms and regulatory modernization, aiming to improve ease of doing business and promote transparency in trade practices.
Once signed, the India-UK FTA will proceed to the ratification stage before coming into force later this year.
Agencies