India and US set to launch bilateral trade talks aimed at $500 billion trade goal

India and the United States are preparing to initiate high-level trade negotiations, with Indian Commerce Minister Piyush Goyal leading a delegation to Washington from May 17 to 20, 2025. These talks aim to establish a Bilateral Trade Agreement (BTA) as part of a broader strategy to more than double bilateral trade to $500 billion by 2030.

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The discussions will focus on reducing tariff and non-tariff barriers, enhancing market access, and aligning regulations to facilitate smoother trade flows. India has proposed significant tariff reductions, aiming to decrease the average tariff gap with the US from nearly 13% to under 4%. In return, India seeks preferential access for key sectors such as textiles, gems and jewellery, chemicals, and agriculture, along with full tariff exemptions on its exports.

The negotiations come amid ongoing trade tensions, with India initiating a case at the World Trade Organization (WTO) concerning US steel duties. Additionally, India is considering imposing counter-tariffs on select US goods in response to existing US tariffs on steel and aluminum imports.