India, US hopeful of concluding first tranche of trade agreement by fall deadline: Govt sources

NEW DELHI: India and the United States are moving steadily towards the conclusion of the first tranche of their Bilateral Trade Agreement (BTA), with both sides expressing optimism about sealing the deal by the fall deadline, government sources said on Monday.

According to government officials, a high-level Indian trade delegation is set to travel to Washington this week for another round of negotiations aimed at resolving pending issues and finalising the initial segment of the agreement. “The discussions with the US are progressing on a positive path. Both sides are hopeful that the first tranche of the Bilateral Trade Agreement will be concluded within the stipulated fall timeline”, a senior government source said.

The upcoming talks are expected to focus on key market access issues, regulatory cooperation, and expanding trade in energy and technology sectors. India is also looking at scaling up imports of natural gas and renewable energy technologies from the United States as part of the evolving trade relationship.

Sources noted that energy cooperation remains an area of mutual interest, with India keen to enhance its long-term LNG procurement and renewable energy collaboration with US firms. “India is exploring avenues to buy more gas and renewables from the US. This aligns with our clean energy transition goals and helps diversify energy sources”, the official added.

Meanwhile, India’s parallel negotiations with the European Union for a Free Trade Agreement (FTA) are also making headway, though some key issues remain unresolved. “Talks with the EU are progressing well. However, there are still pending matters related to the Carbon Border Adjustment Mechanism (CBAM), as well as trade concerns in the steel, auto, and agriculture sectors,” sources said.

An Indian trade team is expected to head to Brussels by the end of this month for another round of discussions to bridge differences and push the FTA process forward. Officials indicated that both sides are working to address regulatory and tariff concerns in a balanced manner. “The Indian side has been constructively engaging with the EU on all outstanding matters, including sustainability-linked trade measures”, said an official.

The EU is India’s third-largest trading partner, and both sides are keen to conclude an agreement that will provide greater market access and regulatory predictability. Both trade tracks with the US and with the EU are part of India’s broader strategy to strengthen its global economic partnerships and secure more resilient supply chains amid shifting geopolitical and trade dynamics. (ANI)