NEW DELHI – India has committed to advancing trade liberalisation with the United States, marking a significant step toward strengthening economic ties between the two nations, Trade Secretary Sunil Barthwal announced on Tuesday.
The declaration came as both countries formalised the terms of reference for the first phase of a bilateral trade agreement, expected to be finalized later this year. The long-term goal: to elevate U.S.-India trade to $500 billion by 2030.
“This is a clear signal — India is opting for a liberalised trade framework with the U.S.,” Barthwal said at a media briefing. Talks are set to begin virtually in the coming weeks, with a follow-up round of face-to-face negotiations scheduled for mid-May, added Rajesh Agrawal, an additional secretary at the trade ministry.
According to previous reporting by Reuters, India is willing to slash tariffs on more than half of the U.S. goods it currently imports — a move that would affect roughly $23 billion worth of trade, and represent one of the largest tariff reductions India has undertaken in years.
The talks come at a time when U.S. President Donald Trump has offered a temporary reprieve from escalating tariffs, pausing new hikes for key trading partners, including India, for 90 days — even as levies on Chinese imports climb higher. This decision offers some breathing room for Indian exporters navigating the volatility of global trade.
Despite Indian Prime Minister Narendra Modi’s close diplomatic outreach — he was among the first global leaders to visit Washington after Trump’s return to the White House — the U.S. President has continued to publicly criticize India’s trade practices, branding the country as a “tariff abuser” and the “tariff king.”
However, during Modi’s February visit, both sides agreed to set aside past disputes and work toward an expedited agreement that could lay the foundation for deeper economic engagement. To further smooth ties, India has pledged to increase its purchases of American defense and energy products — part of a broader strategy to align more closely with U.S. economic and strategic interests.
The United States currently runs a trade deficit of $45.6 billion with India, underscoring the urgency on both sides to recalibrate the relationship and explore mutual gains through cooperation and market access.