A team of officials led by Commerce Secretary Rajesh Agrawal is set to travel to Washington later this week, with a focus on reaching an early conclusion of the proposed trade agreement between India and the United States, a senior government official said on Monday.
"Discussions between India and the US are moving in a positive direction. A team will visit Washington this week. As we have said earlier, the first tranche of the BTA (bilateral trade agreement) will be finalised by the fall (of 2025)," the official said.
The official added that India was looking to increase its purchase of gas from the US, as the country might require more energy products in the long term. Stepping up such imports could also help address Washingtons longstanding concern over the trade deficit with India, which stood at $40.89 billion during FY25.
A team from the US Trade Representative had been planning to come to Delhi for an official round of talks in October. However, amid the ongoing US government shutdown, the Indian delegation will instead travel to Washington to hold an in-person discussion round.
Officials are still to determine whether this round can be classified as an "official" negotiation, given the shutdown.
The visit follows a recent phone call between Prime Minister Narendra Modi and US President Donald Trump, as well as the US India Ambassador-designate Sergio Gor's New Delhi visit.
Last week, Modi called up Trump to congratulate him on the Gaza peace plan. Both leaders also reviewed the 'good progress' made in trade negotiations. On Sunday, the US ambassador-designate met with Agrawal in New Delhi, where discussions focused on enhancing economic ties, including increasing investment in America.
Earlier, both countries last month discussed potential contours of a trade deal during the New York visit of a delegation led by Commerce and Industry Minister Piyush Goyal. Previous trade talks scheduled in August were postponed after tensions escalated over the imposition of steep US tariffs on several Indian imports, including a 25 per cent punitive tariff for New Delhi's purchase of Russian oil.
Both sides are now negotiating a comprehensive resolution that addresses pending issues in the trade deal and Washingtons concerns over India's continued purchase of Russian oil.
The official also said that India and the European Union were yet to resolve matters related to agriculture, automobile, and the carbon border adjustment mechanism (CBAM) in the latest round of free-trade agreement (FTA) talks, which concluded in Brussels on Friday. The 14th round of negotiations took place from October 6 to 10.
"The progress on the India-EU talks has been good, but some problems remain and need to be resolved. Issues that still need attention include agriculture, automobile, and CBAM," the official said, adding that the next round of negotiations could take place by the end of the month. India and the EU are working towards an "early conclusion" of the trade deal and targeting the year-end deadline.
-- Shreya Nandi, Business Standard
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