The bilateral trade agreement between India and the USA has been a topic of discussion in both countries for quite some time. Now, there are strong indications that this agreement will be finalized very soon.
SNPNEWS.IN News (Gurmail Kamboj): The trade deal between India and the USA has been under discussion for a long time. Under this, the USA wants India to create a favorable environment for the sale of its agricultural products, dairy products, and other goods by setting certain standards.
Bilateral Trade Agreement (BTA) talks between the leaders of both countries (Trump/Modi) officially began in February 2025. Since then, several rounds of meetings have taken place between the delegations of the two countries.
In April 2025, US President Donald Trump imposed heavy tariffs on many countries trading with Russia. During this period, citing India’s import of crude oil and natural gas from Russia, Trump decided to increase tariffs up to 50% on goods exported from India to the USA. Additionally, the White House administration has been upset with India’s active participation in BRICS.
Due to the impact of US tariffs on Indian exporters, Indian companies have unofficially started reducing oil purchases from Russia from October onwards. It is being claimed that exports from India to the USA fell by up to 20-30% between May–September 2025, which is putting pressure on Indian officials to conclude the talks quickly.
To reduce tensions between the two countries, Indian refineries are continuously limiting oil imports from Russia. India has signed a deal to buy more US LPG (2.2 million tonnes per year), which will account for up to 10% of India’s total LPG imports. This will help reduce the trade deficit and please the Trump administration.
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The USA now appears ready to reduce the 50% tariff to 15–16%, while India will reduce its import tariffs on more than 80% of products (excluding agriculture and dairy). Trump said on November 11 that the deal is “pretty close” and tariffs will be reduced.
The White House administration is demanding that India open its market for US agricultural products (such as soybeans, corn, dairy). In addition, the USA is insisting on higher labor standards, environmental regulations, and data rules, which are proving difficult for India’s small industries (factories). The most critical issue on which talks have been stuck is controlling subsidies given to the agriculture sector. The White House argues that if the Indian government continues heavy subsidies, it will be difficult for American exporters to compete in the market. India is not ready to compromise on subsidies to protect its farmers and small traders. This difference has repeatedly stalled the negotiations.
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A US official said on November 14 that there have been “a lot of positive developments” and results could come by the end of the year.
India’s Commerce Secretary Rajesh Agarwal said on November 17 that the agreement is almost complete. He stated that the deal will be fully compliant with WTO rules and sensitive sectors (agriculture, dairy) will be handled carefully.
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Commerce and Industry Minister Piyush Goyal, speaking at the Indo-US Economic Summit in New Delhi on November 18, 2025 (organized by the Indo-American Chamber of Commerce), gave an important statement on the India-US trade agreement (BTA). Goyal said that India will fully protect the interests of its farmers, fishermen, and small industries. He assured that during the trade talks, the government is committed to safeguarding all sectors (especially agriculture and small industries). Keeping in mind the US demands regarding agriculture, dairy, and GM crops, he said that sensitive issues will be resolved.
Overall, all recent statements and developments indicate that the first phase of the India-USA trade agreement is very close to being finalized, possibly by the end of November 2025.