India, US begin fresh trade talks on tariffs.
The visit is mainly a familiarisation trip, MEA spokesperson Randhir Jaiswal said, confirming the delegation’s arrival during a media briefing on Monday.
India and the United States are set to begin another significant chapter in their trade negotiations this week, as Deputy U.S. Ambassador for Trade Rick Switzer arrives in New Delhi for a two-day visit on December 10 and 11. His trip marks the latest effort by both nations to fast-track discussions on a long-pending Bilateral Trade Agreement (BTA) — a deal that could reshape the economic relationship between the world’s two largest democracies.
According to the Ministry of External Affairs (MEA), the visit is largely intended as a familiarisation trip, allowing Switzer to better understand India’s current policy environment and economic priorities. MEA spokesperson Randhir Jaiswal, speaking at a media briefing on Monday, confirmed the diplomat’s arrival and outlined the purpose behind the engagement. active and constructive.
The U.S. delegation is expected to hold a series of high-level meetings with officials from the Ministries of Commerce and Finance, as well as with representatives from key industry sectors. While no formal announcement is expected during this visit, officials on both sides see it as an important step toward finalising the contours of a deal that has been in the works for years.
A push for a fair and balanced deal
India and the U.S. have consistently highlighted the need for a fair, balanced, and mutually beneficial agreement, especially at a time when both economies are seeking greater stability amid global supply chain shifts. Several rounds of negotiations have already taken place, and optimism remains high that the two nations can reach an understanding before the end of the year.
Commerce Secretary Sunil Agarwal, speaking at the FICCI Annual General Meeting on November 28, said that the two sides were making “steady progress” and expressed confidence that an agreement was within reach. However, he also acknowledged that recent shifts in U.S. trade policies — particularly the imposition of additional tariffs — had forced negotiators to adjust their timelines.
Challenges amid ongoing trade tensions
Despite the positive momentum, the pathway to finalising the BTA has been anything but straightforward. One of the biggest obstacles stems from U.S. tariff measures introduced during former President Donald Trump’s tenure. In August 2021, the U.S. imposed a 25% tariff on several categories of Indian goods, followed shortly by another 25% hike. These measures were justified on the grounds of India’s continued imports of Russian oil, as well as America’s broader effort to address its trade deficits with multiple countries.
The tariffs deeply impacted several Indian export sectors, including steel, aluminum, textiles, and certain manufactured goods. India, while critical of the measures, chose to maintain dialogue rather than escalate the dispute — a strategy that has helped keep trade negotiations alive even during periods of heightened tension.
Since then, multiple rounds of discussions have attempted to address tariff concerns, market access barriers, and regulatory issues. Both sides recognise that the future of the BTA depends heavily on resolving these questions in a manner that satisfies domestic political and economic stakeholders.
A transformative agreement in the making
If successfully concluded, the proposed Bilateral Trade Agreement has the potential to more than double trade volumes between India and the United States. Officials have set an ambitious target: raising total bilateral trade from USD 191 billion to USD 500 billion by 2030. Achieving this would place the U.S. firmly as one of India’s top economic partners, rivaling trade volumes with China and the European Union.
The idea of such a trade agreement gained fresh momentum earlier this year during Prime Minister Narendra Modi’s visit to Washington, where both sides emphasized the strategic importance of deepening economic cooperation alongside growing defense, technology, and energy partnerships.
India’s broader trade strategy
India’s push for a deal with the U.S. fits within a larger national strategy to expand its global trade footprint. The country has already signed 14 Free Trade Agreements (FTAs) and six Preferential Trade Agreements (PTAs) with partners across Asia, Latin America, and Europe. Negotiations are currently underway with several major economic blocs, including the European Union, the United Kingdom, and the Gulf Cooperation Council (GCC).
For India, securing a trade deal with the U.S. would mark one of its most significant diplomatic and economic achievements in recent years. The U.S., likewise, views India as a critical partner in the Indo-Pacific region — both as a market and as a strategic counterweight in global geopolitics.
As Rick Switzer begins his visit, hopes are high that this round of talks will move both countries closer to a long-awaited agreement. While challenges remain, the political will on both sides suggests that India and the U.S. may finally be approaching a new era in their trade relationship — one built not just on negotiation tables, but on shared economic ambition for the decade ahead.