India-U.S. Trade Pact Nears Completion as Goyal Says Only Final Issues Remain

India and the U.S. are close to concluding negotiations on their proposed Bilateral Trade Agreement (BTA), with only the final set of issues left to be resolved, Union Commerce Minister Piyush Goyal said on July 2. Speaking to NDTV during an India-Japan partnership event, Goyal said discussions have narrowed to the last “1%” of pending matters and described the proposed agreement as balanced and beneficial for both countries.

He said the objective of the trade pact is to improve India’s access to the U.S. market and strengthen the competitiveness of Indian exports against those from other economies.

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Market Access Remains Central

According to Goyal, free trade agreements are primarily aimed at securing better market access than competing exporting nations. He said India is pursuing the agreement with that objective, while noting that several other economies are also seeking similar advantages in the U.S. market.

The minister said the European Union, the United Kingdom, Switzerland, Japan and South Korea have all been engaging with Washington to improve market access for their exporters. He added that these competing interests account for the limited issues that remain under discussion.

Negotiations on the proposed India-U.S. Bilateral Trade Agreement began in February 2025. Since then, both countries have agreed on the broad framework of an interim arrangement, with talks now focused on resolving the remaining differences before the pact is finalised.

Time Difference Posed Operational Challenge

During the interaction, Goyal said he shares a productive working relationship with his counterparts in the U.S. He added that the biggest operational challenge for the negotiating teams has been managing the significant time difference between New Delhi and Washington, describing it as the most difficult aspect of the discussions.

Referring to a recent ruling by the U.S. Supreme Court on certain tariff measures, the minister said the U.S. administration would need to identify a legally sustainable framework if it intends to extend preferential trade treatment over competing countries.

Exports Continue to Grow

Goyal said India’s merchandise exports have continued to remain resilient despite higher tariff barriers in global markets. He added that merchandise exports are expected to register around 15% year-on-year growth during the first quarter of FY27.

The minister also highlighted progress on other trade initiatives, stating that the India-UK Free Trade Agreement is scheduled to come into effect on July 15. As per him, the deal will help open up more avenues for Indian exporters in various industries.

Now that negotiations over the India-U.S. trade deal have entered their final stage, all efforts are being made to sort out the outstanding issues to be able to proceed with the suggested deal.