Union Commerce Minister Piyush Goyal met U.S. Secretary of Commerce Howard Lutnick On Tuesday. They discussed how to fast-track the first stage of the India-U.S. Bilateral Trade Agreement.

After the meeting, Goyal posted on X, “Good discussions with Secretary Howard Lutnick towards expediting the first tranche of India-US Bilateral Trade Agreement.”

India Races to Seal Deal Before Tariff Deadline

Earlier in April, U.S. President Donald Trump announced a 90-day pause on new tariff hikes. This included a proposed 26% tariff on Indian goods. As a result, India is working to finalize a trade agreement during this limited window.

Trade Between U.S. and India Continues to Grow

So far, trade between India and the U.S. reached about $129 billion in 2024. Notably, the U.S. remains India’s largest trading partner. Moreover, India holds a $45.7 billion trade surplus with Washington.

Trump Says India May Scrap All Tariffs

Last week, Trump claimed that India is ready to lift all tariffs on American goods. However, he also said, “I’m in no hurry to reach a trade deal with the country.” During a Fox News interview, he stressed that India had strong trade barriers he intended to remove.

Jaishankar Emphasizes Fairness in Talks

Meanwhile, External Affairs Minister S. Jaishankar responded to Trump’s remarks. He said, “Between India and the US, trade talks have been going on. These are complicated negotiations. Nothing is decided till everything is.”

Furthermore, he added, “Any trade deal has to be mutually beneficial; it has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature.”

Deal May Roll Out in Three Phases

According to Bloomberg, the India-U.S. trade deal may develop in three stages.

First, both countries may agree on limited market access. This includes industrial goods and some agricultural products. The goal is to lower basic trade barriers.

Then, in the second stage, the deal could expand. It may cover wider issues like easing strict quality checks and product regulations. Officials expect this stage to launch between September and November 2025.

Finally, the third stage would lead to a full agreement. However, the U.S. Congress must approve it. Therefore, officials believe this phase might not conclude until 2026.