An Indian delegation led by a top official will be in Washington, D.C., today, seeking to seal the first part of a proposed bilateral trade agreement between India and the US. As the August 1, 2025, tariff deadline proposed by President Donald Trump draws nearer, Commerce and Industry Minister Piyush Goyal has confirmed that negotiations are proceeding smoothly, cooperatively, and on a positive basis. Farming, cars and market entry are the main focus areas.
The talks are scheduled to start on Monday and are expected to last four days. The main negotiator, Mr Rajesh Aggarwal, will have to attend the meeting in the mid-week and there will be more clarity on the agenda setting. The Indian team aims to strike an agreement on favourable terms before the U.S. issues its official notifications on tariffs. It has been reported that U.S. tariffs may ultimately be reduced to below 20%, making India even more competitive in the American market.
Along with the negotiations with the U.S., India is pursuing a long-pending Free Trade Agreement (FTA) with the European Union. Commerce Secretary Sunil Barthwal said the negotiations that took a pause eight years ago have restarted, and its completion is sought by the end of 2025. The agreement covers goods, investments, and services.
The EU deal forms part of a broader effort to expand India's trading alliances, which are being negotiated with the UK and other countries. Barthwal stated that such FTAs have built-in systems that ensure convergence of regulatory standards and support investor confidence. Intellectual property rights, service sector norms, and dispute resolution systems are some of the elements that India is keen to adopt to match global best practices.
The new FTAs have considerably shifted priorities in contrast to classical trade agreements, which specifically prioritised tariffs and goods. The arrangements address aspects of data privacy, cross-border data flow, and digital services regulation. India considers these chapters crucial in luring global capability centres (GCCs) and technological investments.
The innovation aspect that Barthwal touted in the proposed FTA between the UK and India involves establishing a working group to encourage research and development. These are long-term regulators, as they provide regulatory certainty, which encourages participation among the private sector, given the specific institutional mechanisms in place.