India is hopeful of resuming negotiations with the United States on the proposed Bilateral Trade Agreement (BTA), with resolving Washington’s steep 50% tariff on Indian goods being key to sealing the deal, a senior government official said on Thursday.
The official clarified that fresh dates for the next round of negotiations are yet to be finalized. T
alks began in March, and five rounds have been completed so far. However, the US team, scheduled to visit India on August 25 for the next round, postponed the meeting.
The pause comes amid Washington’s demand for greater market access in politically sensitive sectors like agriculture and dairy—areas India is unwilling to compromise on, as they directly affect the livelihoods of small and marginal farmers.
When asked about imposing retaliatory duties on the US, the official said:
“Retaliation and negotiations cannot go hand-in-hand. Right now, the talks are only postponed, not canceled. So why worry? Retaliation is always an option we can exercise at any point in time.”
India has already reserved its rights under WTO norms to impose retaliatory duties in response to US tariffs on steel, aluminium, and auto components.
The official emphasized that the priority is to strike a deal that safeguards national interests:
“We are engaged. We feel that India and the US are complementary economies and need a deal that is a win-win proposition for both nations.”
Engagement between the two sides remains active. On August 26, senior Indian and US officials discussed trade and investment, critical minerals, and energy security under the ‘2+2 Intersessional Dialogue.’
This comes against the backdrop of strained trade ties due to US tariff policies.
The US and India plan to conclude the first phase of the BTA by fall 2025 and aim to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion.
Meanwhile, the tariff escalation has begun to bite. A 25% tariff on Indian goods entering the US came into effect on August 7, followed by an additional 25% penalty on India’s crude oil and defense purchases from Russia on August 27.
India has called these tariffs “unfair, unjustified, and unreasonable,” while defending its energy partnership with Russia as a market-driven decision critical for ensuring energy security for 1.4 billion citizens.
Trade data shows that during April-July 2025, India’s exports to the US rose 21.64% to $33.53 billion, while imports grew 12.33% to $17.41 billion, making the US India’s largest trading partner during this period.
Prime Minister Narendra Modi, in his Independence Day address, vowed to protect the interests of farmers and fishermen, reaffirming that India will never compromise their welfare.
India’s patience, resilience, and justified stance may pave the way for a breakthrough in resolving Washington’s exorbitant tariffs.
However, if tensions escalate, both nations risk severe economic consequences—a reality already reflected in shaken investor confidence and volatile markets on both sides.
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