Piyush Goyal meets Commerce Secretary Howard Lutnick to advance India-US trade deal

Union Commerce Minister Piyush Goyal on Tuesday held talks with the US Secretary of Commerce Howard Lutnick to expedite the first tranche of the India-US Bilateral Trade Agreement.

“Good discussions with Secretary Howard Lutnick towards expediting the first tranche of India-US Bilateral Trade Agreement,” the minister said on X.  

Goyal’s visit to the US comes as New Delhi seeks to clinch a trade deal with the country within the 90-day pause on tariff hikes announced by US President Donald Trump on April 9 for major trading partners, including a 26 per cent tariff on India.

Trade between the US and India totalled around $129 billion in 2024 as Washington retains its position on being New Delhi’s biggest trading partner. The trade balance between the two countries is favourable to India, which runs a $45.7 billion surplus with the US.

Trump says…

Last week, Trump claimed that India is ready to remove all tariffs on US goods, but added that he is in no hurry to reach a trade deal with the country. During an interview with Fox News, the president said that India is the country with barriers he is determined to remove.

Meanwhile, External Affairs Minister S Jaishankar , responding to Trump’s comments, said, “Between India and the US, trade talks have been going on. These are complicated negotiations. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature.”

A 3-stage trade pact

According to a report by Bloomberg, India is working on a trade deal with Washington, which will be planned in three stages. The deal could provide easier market access for industrial goods and certain agricultural products. It may also aim to ease trade barriers, including stringent quality control regulations.

Officials from India told the news outlet that the second stage of the deal could entail a larger and more detailed agreement, likely to come into effect between September and November this year.

The final phase of the deal—a comprehensive agreement—will require approval from the U.S. Congress and, according to officials, may not be completed until next year.