Archive · 17 Nov 2025
India and US Near Trade Deal on Reciprocal Tariffs
India and the United States are getting close to finishing the first part of a big trade agreement.
This first part is all about fixing the extra taxes (tariffs) that each country puts on goods from the other country.
India's trade boss said this part is almost done.
There's another part of the deal that will take longer to figure out because it's more complicated.
The main goal is to make trade between the two countries much bigger, going from $191 billion to $500 billion in the next few years.
The US had put higher taxes on some Indian products, and these talks are happening even with that.
Also, India and the US are talking about India buying American gas (LPG), but this is separate from the main trade deal.
India and the US are nearing completion of the first phase of their Bilateral Trade Agreement (BTA), focusing on reciprocal tariffs.
Commerce Secretary Rajesh Agrawal stated the tariff-related segment of the BTA is 'near closure,' with a broader goal to increase bilateral trade to $500 billion by 2030.
The US has imposed reciprocal tariffs on Indian goods, citing reasons including India's purchase of Russian oil.
Negotiations for the BTA are progressing despite tariff escalations, with assurances that the pact will be WTO-aligned.
A separate structured contract for US Liquefied Petroleum Gas (LPG) for the Indian market is also advancing, independent of the BTA.
- Who
- India's Commerce Secretary Rajesh Agrawal, US government
- What
- The first phase of a Bilateral Trade Agreement (BTA) focused on reciprocal tariffs is nearing completion, alongside independent talks for an India-US LPG supply deal. This comes amidst US tariff impositions on Indian goods.
- When
- Commerce Secretary's statement on Monday (November 17, 2025); US tariffs imposed starting August 1, 2025; BTA formally proposed in February 2025.
- Where
- India and the United States
- Why
- To resolve reciprocal tariff issues, expand bilateral trade to $500 billion by 2030, and potentially balance trade flows with an LPG supply arrangement.
Progress on Bilateral Trade Agreement (BTA)
US Tariff Impositions and Indian Concerns
Pace and Scope of Negotiations
Progress on Bilateral Trade Agreement (BTA)
Commerce Secretary Rajesh Agrawal indicates the first phase of the BTA, focusing on reciprocal tariffs, is 'near closure,' suggesting strong progress and potential for quick resolution of tariff issues.
US Tariff Impositions and Indian Concerns
The US has imposed significant tariffs (25% on August 1, plus another 25% later) on Indian goods, partly due to India's purchase of Russian oil. This has created trade friction despite ongoing BTA talks.
Structure and Complexity of the BTA
Progress on Bilateral Trade Agreement (BTA)
The BTA is structured into two components: an immediate tranche for reciprocal tariffs and a more complex overall trade agreement that will take longer to negotiate.
US Tariff Impositions and Indian Concerns
While talks continue, India has previously expressed reservations about US proposals seeking greater access to its agricultural and dairy sectors, indicating potential sticking points for the broader agreement.
- Bilateral Trade Goal
- $500 billion by 2030
- Current Bilateral Trade
- $191 billion
- US Tariffs on Indian Goods
- 25% (Aug 1, 2025) + additional 25%
- LPG Supply Deal
- Structured contract for US LPG for Indian market confirmed
Sources
RBI announces relief measures for exporters hit by US tariffs
Mint Explainer | What US tariff exemptions on key farm goods mean for India's exporters
Rupee flat in Monday trade; Analysts see pressure on dollar after relief measures for exporters
RBI export relief may pressure rupee as exporters delay dollar conversions
India US inching closer to trade package on reciprocal tariffs
India-US Trade Pact Nears First-Phase Completion: Commerce Secretary; Details Inside
