First phase of India-US trade deal likely before July; India wants full exemption from Donald Trump's 26% tariffs on certain goods: Report

India and the US may finalise the first phase of the India-US trade deal before July. Currently visiting the United States, Commerce and Industry Minister Piyush Goyal is spearheading discussions with American counterparts. One of India's primary requests involves seeking complete relief from the 26 per cent duty levied on specific items.

"Good discussions with Secretary Howard Lutnick towards expediting the first tranche of India-US Bilateral Trade Agreement ," Minister Goyal shared on social media platform X yesterday, indicating favourable progress in the negotiations.

Sources told ANI that indicated that consultations with the United States Trade Representative have been completed. Representatives from both countries have addressed multiple aspects of merchandise trade, with India seeking preferential treatment for exports in labour-intensive sectors including leather and textiles.

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The deliberations have also significantly focused on matters pertaining to the service industry.

"We want to increase our exports and preserve what we are already exporting," a source familiar with the negotiations told ANI. "The BTA with the US will be a win-win deal for both countries."

India maintains a cautious stance regarding vulnerable sectors, specifically agriculture and dairy industries.

"Negotiations are proceeding on a very positive note, and we expect to conclude the agreement before the sunset clause set by the US, which expires on July 8," one of the sources added.

Earlier, US President Donald Trump has said that India has offered zero tariffs in the ongoing negotiations.

The trade agreement between India and the United States would represent a crucial development in economic ties between these two significant economies, with the potential to create additional opportunities for trade and investment between both nations.

In 2024-25, the United States maintained its position as India's primary trading partner for the fourth year running, with trade figures reaching $131.84 billion. India achieved a goods trade surplus of $41.18 billion during this period.

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At their February meeting, US President Donald Trump and Indian Prime Minister Narendra Modi committed to enhancing trade and investment relations to strengthen both nations, boost economic innovation, and enhance supply chain stability.

The leaders established "Mission 500", an ambitious initiative targeting USD 500 billion in bilateral trade by 2030, effectively doubling current levels. Their focus remains on developing trade relationships that ensure equitable growth, protect national security interests, and create employment opportunities.

Parallel to US discussions, India is actively pursuing trade negotiations with the European Union, with expectations of reaching an initial agreement soon.

The India-EU trade talks are showing significant progress, with both parties aiming to finalise an early harvest trade agreement this year. Representatives from India's Commerce Ministry are scheduled to visit Brussels this week for the next phase of negotiations with the EU.

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