NEW DELHI: Commerce and industry minister
Piyush Goyal on Tuesday said that India and the US are in talks for a trade deal that could be finalised by November this year, further acknowledging that "a little bit of geopolitical" issues have overtaken the discussions.
"I do hope that things will get back on track soon and we will conclude a bilateral trade agreement by the fall, November or so, as was discussed by our two leaders in February," Goyal said while addressing the Annual Global Investor Conference 2025 in Mumbai.
"We have had a little bit of geopolitical issues overtaking trade issues in our negotiations with the United States of America," he added.
The remarks come amid heightened trade tensions after US President Donald Trump imposed 50% tariffs on Indian goods, accusing New Delhi of indirectly financing the Russia-Ukraine war through crude oil imports from Moscow.
Acknowledging challenges, the minister added, "We have had a little bit of geopolitical issues overtaking trade issues in our negotiations with the United States of America.”
Despite hurdles, Goyal noted growing global interest in India as a trade and investment partner.
"Lots happen, lots more to go...With the US, we are in dialogue with them on a BTA," he said earlier today at another industry chamber event on sustainability.
India, he stressed, has drawn "red lines" in the negotiations, refusing to open its agriculture and dairy sectors, while also asserting "strategic autonomy" in its trade with Russia.
India has already signed free trade agreements with Australia, the UAE, Mauritius, the UK, and the four-nation European bloc EFTA.
Negotiations with the US began in March, with five rounds of talks completed so far.
Following the implementation of a 50% tariff from August 27, the American delegation postponed their planned visit to India for the subsequent round of talks, which was originally set for August 25.
Currently, the dates for the sixth round of negotiations remain undetermined.
Last week, an ET report said that India and the US maintain active communication channels to address their current tariff disagreement.
Officials have further assured exporters that the situation is transient within their enduring bilateral relationship, advising against undue concern.
Discussions regarding the proposed Bilateral Trade Agreement will progress based on mutual consideration of each nation's concerns and non-negotiable parameters.
Officials noted, "The impact (of the tariffs) is unlikely to be as severe as feared given the diversified nature of Indian exports. It is a temporary phase in a long-term relationship."
However, a few days ago US Treasury Secretary Scott Bessent struck a reconciliatory note, characterising the India-US relationship as "very complicated," while expressing optimism that "at the end of the day, we will come together."
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