India and the US are moving closer to a bilateral trade deal that will benefit both parties. In order to advance the first tranche of the Bilateral Trade Agreement (BTA), Union Commerce and Industry Minister Piyush Goyal met with US Commerce Secretary Howard Lutnick. Before the end of 2025, this agreement seeks to lower tariffs.
Good discussions with Secretary @HowardLutnick towards expediting the first tranche of India-US Bilateral Trade Agreement. pic.twitter.com/8JjklXyEjl
— Piyush Goyal (@PiyushGoyal) May 19, 2025
This is viewed by both parties as a significant step in strengthening economic ties and achieving the $500 billion trade goal set by US President Donald Trump and Prime Minister Narendra Modi by 2030.
Strong Case for Bilateral Deal
India has made a compelling case for a trade agreement, according to Piyush Goyal. He cited India’s youthful, expanding population and strong economic prospects. He claimed that in the ensuing decades, these factors will fuel demand for goods and services worldwide.
“Looking at the growth India offers in the next 25-30 years, with a large, aspirational, young population… we believe India will be a compelling case to enter into a good agreement with the US.” he stated.
Meeting Signals Constructive Intent
Piyush Goyal wrote on X about his “constructive meeting” with Lutnick on Thursday (US time). The main topics of discussion were developing a plan for lowering tariffs and completing the BTA’s initial gains. Goyal affirmed that the two countries are still dedicated to improving business and interpersonal interactions.
Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people. 🇮🇳 🇺🇸 pic.twitter.com/WiADbGNkif
— Piyush Goyal (@PiyushGoyal) May 22, 2025
The formal process has accelerated because the agreement’s terms of reference have already been finalized. The current goal of both sides’ officials is to sign the deal’s first tranche well before the fall of 2025.
Trump Claims India Open to Zero Tariffs
India has offered to remove all tariffs on American goods, according to a recent statement by President Donald Trump. He did, however, add that he was not in a rush to complete the trade agreement. Nevertheless, the ongoing talks show that both governments are committed to reaching a deal that will boost their respective economies.
Target: $500 Billion in Trade
The ambitious goal set during PM Modi’s visit to Washington is in line with the bilateral trade agreement between the US and India. By 2030, trade is expected to reach $500 billion. A successful early agreement could increase investor confidence in both markets and generate momentum for more extensive economic cooperation.
This continued partnership demonstrates a dramatic change in the dynamics of trade between the US and India, motivated by strategic alignment and long-term growth goals.
