What happened?
India and the United States have finalized the terms of reference for the first phase of a bilateral trade agreement, aiming for completion by the end of 2025. The move is part of a broader ambition to expand trade to $500 billion by 2030. The agreement will include liberalisation of both tariff and non-tariff barriers. India’s trade secretary expressed optimism about achieving a “good” deal, while highlighting the steady progress being made in the negotiations.
Why it matters to India
A structured trade deal with the US could unlock new market access, enhance technology exchange, and attract investment, bolstering India’s export competitiveness. However, India maintains a firm stance on protecting domestic interests. Union Commerce Minister Piyush Goyal emphasized that India does not “negotiate at gunpoint,” reinforcing New Delhi’s commitment to fair and sovereign-centered trade outcomes. This cautious but constructive approach comes as the US selectively adjusts tariffs globally, suspending hikes for partners like India while raising them for China.