Commerce and Industry Minister Piyush Goyal has indicated that India will not announce the India-US Bilateral Trade Agreement (BTA) until Washington provides tariff concessions that place Indian exports on a more favourable footing than those of competing countries. His remarks highlighted one of the major hurdles that has prolonged trade negotiations between New Delhi and Washington.
"As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details," Goyal said at a national workshop on leveraging free-trade agreements.
According to the minister, India wants tariff concessions comparable to those extended by the US to competing exporters such as Vietnam and Bangladesh. He said Indian products should receive rates that are either more favourable or reduced to zero.
"We have to see the rate that Vietnam pays in another country and what Bangladesh goods are charged. Our rates will be better," he said.
Goyal also spoke about India’s existing free trade agreements (FTAs) and those that are expected to become operational, saying the government had set an ambitious target for the year. He maintained that India had obtained favourable terms in each of the nine FTAs concluded so far, including agreements with the UK, New Zealand and the European Union.
Goyal's comments come as India continues to navigate its established trade relationships with Iran and Russia while seeking to sustain economic ties with the United States.
India and the US had announced the finalisation of the framework for the first phase of the proposed trade deal in February. However, subsequent shifts in the US tariff regime under President Donald Trump have contributed to further delays in negotiations.
From July 24, Washington introduced an additional 10 per cent tariff on imports from several countries, including India. The move followed a US Supreme Court ruling that struck down the administration’s unprecedented reciprocal tariffs as unconstitutional.
