India and US Negotiate Bilateral Trade Agreement in Washington

A 12-member Indian delegation led by chief negotiator Darpan Jain met with US officials in Washington from April 20 to 22, 2026, to recalibrate the first phase of a proposed Bilateral Trade Agreement (BTA). The negotiations were prompted by a February 20 US Supreme Court ruling that invalidated reciprocal tariffs, leading Donald Trump to impose a temporary 10 percent uniform tariff on all trading partners starting February 24. This policy erased the preferential advantage India had previously negotiated, which aimed to reduce US tariffs on Indian goods to 18 percent.

Indian Commerce and Industry Minister Piyush Goyal stated that the first tranche of the agreement is almost finalized, though both nations are still working to resolve remaining gaps. India is specifically seeking a mechanism for preferential market access to maintain a competitive edge over other nations. The talks also addressed India's rejection of two Section 301 unilateral investigations launched by the US Trade Representative.

Political momentum for the talks followed a phone call between Prime Minister Narendra Modi and President Trump. The broader goal of the BTA is to reach a trade target of $500 billion by 2030, up from approximately $212 billion in 2024. India has indicated it may increase purchases of US energy, aviation, and technology products over five years as part of the deal. The Ministry of Commerce and Industry described the engagement as constructive, focusing on digital trade, investment promotion, and supply chain resilience.