New Delhi: India and the United States have reported “positive progress” in their ongoing negotiations for a Bilateral Trade Agreement (BTA), the Ministry of Commerce and Industry said on April 30, 2025, as both sides work toward a first-phase conclusion by Fall 2025.
Delegations from India’s Department of Commerce and the US Trade Representative’s Office met in Washington DC, from April 23 to 25, building on earlier rounds of talks held in New Delhi in March. Discussions spanned tariff and non-tariff issues, with both parties identifying “early mutual wins” that could strengthen bilateral supply chains and broader economic cooperation.
In a notable development, India has proposed the inclusion of a “forward most-favoured-nation” (MFN) clause in the agreement. If accepted, this would guarantee the United States access to any more favorable trade terms India may extend to other countries in the future, without requiring new negotiations. The move signals India’s commitment to ensuring long-term parity and trust in its trade partnerships, while providing the US with a safeguard against being left behind as India expands its global trade footprint.
The talks come in the wake of the joint India-US Leaders’ Statement issued in February 2025, which envisioned deeper integration through a broad-based trade pact. In-person, sector-specific consultations are scheduled to begin by the end of May to build on the virtual meetings held so far.
US Treasury Secretary Scott Bessent recently stated that India could be the first country to finalise a bilateral deal under the Biden-era framework to avoid additional reciprocal tariffs proposed by former President Donald Trump. Currently, Indian exports face a 10% base tariff in the US, with a proposed 26% hike temporarily suspended until July 8.
Bessent attributed the smooth pace of talks to India’s relatively open trade posture, citing its limited government subsidies, minimal non-tariff barriers, and absence of currency manipulation.
As the negotiations advance, the proposed forward MFN clause could prove pivotal in shaping not just this agreement, but India’s future trade architecture with other global partners.
BI Bureau
